Dive Brief:
- Employers nationwide are beginning to offer a new perk to their increasingly debt-burdened millennial workforce: help in paying off student loans.
- And according to a new study by NerdWallet, undergraduate student debt holders can trim nearly three years off their payments and have $4,100 cut in interest from their debt by taking advantage of a typical employer contribution benefit.
- This emerging employee benefit typically offers workers with student debt regular contributions toward loan repayments — with a lifetime limit. Companies that recently announced they will be offering the perk include PricewaterhouseCoopers, Natixis Global Asset Management and Fidelity Investments, according to NerdWallet.
Dive Insight:
NerdWallet reports that in recent months several large companies began offering student loan debt repayment benefits. For example, last September, PricewaterhouseCoopers said it would pay $1,200 a year for employees with one to six years of work experience, as much as $10,000 total.
NerdWallet named Natixis Global Asset Management and Fidelity Investments as two other employers offering student loan help.
Bruce Elliott, manager of compensation and benefits at SHRM, told NerdWallet that today's job candidates will be judging employers not only on base salary and bonuses, but also the types of benefits they find most appealing. For example, a recent study by Beyond, a career networking website, found that 89% of job seekers said they believe employers should offer student loan repayment in benefit packages.
Victoria Simons, a data analyst at NerdWallet, said she did the study partially because she was curious to find out if the trend was more a public relations issue then a meaningful employee perk. She was impressed with the findings. "There is substantial savings to be had if you're an undergrad; these contributions can make a pretty big difference," she told Bloomberg News.
