Student Loan Assistance Is Becoming An Increasingly Common Employee Perk

After an extended pandemic-era reprieve, student loan borrowers will soon be on the hook to continue paying back their loans. Meanwhile, employers nationwide continue looking for ways to recruit and retain the best employees possible.

It was only a matter of time before these two issues converged.

The birth of a new perk

While the Biden administration has faced legal and political roadblocks in its efforts to erase a large portion of the nation’s college loan debt, there’s nothing stopping private companies from providing such relief for their employees.

And there’s evidence that a growing number of employers are warming up to the idea of offering student loan assistance as a corporate benefit.

One example is HSA Bank, where Executive Managing Director Kevin Robertson said a tuition reimbursement program unveiled earlier this year has become a benefit that is “not only attractive but really relevant” to many employees.

He noted that there’s also a clear benefit to employers, particularly during a period of low unemployment rates.

Your mileage may vary

HSA Bank is hardly alone in providing this type of assistance to employers. One recent survey found that nearly 50% of employers are offering some form of tuition assistance.

Of course, the scope of these benefits differs greatly from one company to the next.

Liberty Mutual has one of the more comprehensive programs out there and 1,242 of its employees took advantage of it last year alone. The benefit covers up to $6,000 per year for undergraduate education and up to $9,000 in annual graduate education costs.

Alex Hall, a VP at the insurance company, explained that he “felt supported” and empowered to apply for college programs he would have otherwise skipped because he knew his employer was there.

Chris Agee September 18th, 2023

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