According to the International Foundation of Employee Benefits Plans, 23% of employers are considering implementing a student loan repayment benefit in the future. Well, that future isn’t too far away because over the next 3 years, more than 30% of employees will provide a student loan repayment benefit (SHRM, 2019).
Employers who did not implement the benefit expressed similar concerns. These concerns are addressed along with how LoanSense solves for these concerns, so employers can implement a student loan program with low risk, and peace of mind.
Reason #1 —_Almost half (48.9%) of respondents cited cost. Any business worries about cost. With LoanSense, your company does not have to incur significant additional costs. If your company is already investing in a retirement plan match or profit share, paid time off, or tuition reimbursement, you can easily include student loan repayment assistance as a choice in your offering. For example, if your company provides tuition reimbursement, you can let employees choose between tuition reimbursement or student loan assistance. Depending on the retirement set up, employers can let employees choose if they want to allocate 401k matching funds or profit-sharing towards student loans.
Or if employers allow for roll over vacation, employers can allow employees to roll leftover PTO towards their student loans. There are many ways to creatively allow employees to spend what you are already investing without increasing your cost to provide an additional benefit. Benefits yield a high return on investment if an employee's choice increases perceived value and, as a result, employees increase their stay time or join your company. Your company will actually save money in increased productivity and stay time. We will break down how LoanSense can actually save employers money.
Reason #2 —Thirty-one percent cited uncertainty/complexity of implementation. LoanSense is a turnkey solution. We provide all the onboarding materials and there is no complex technological integration. It takes under 2 hours for HR maximum. We liaise with any payroll vendor and there are no changes required in your retirement plan documents or integration with your 401k TPA.
Reason #3 —Almost 30% worry about potential resentment among workers who have already paid off loans. With LoanSense’s student loan matching solution, you are providing an alternative to a benefit other employees without student loan debt can take, such as tuition reimbursement or use of company retirement matching funds. You are simply providing choice. It isn’t giving any one employee special benefits above other employees. Plus, from all the workforces we have surveyed, over 90% of those surveyed without student loan debt believe it is great for company culture and lets employees know their employer cares about them.
We’ll do all the work and give employers the credit. LoanSense lets employees know how much money they are saving because of your investment in them.