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More Companies Offering Student Loan Help

Sunday, March 27, 2016

Here’s a new recruitment tool to attract Millennials entering the workforce—offer to pay off their student loans. By making student loan payments part of employee benefit packages, some companies are seeing a spike in retention and recruitment levels. However, the perk isn’t as straightforward as it might seem. Unlike matching funds that employers put into retirement accounts, the money used to help repay student loans still counts as taxable income, although there are efforts in Congress to change this. However, despite this hang-up, employers have realized this benefit is a valuable recruitment tool. A survey released by Iontuition, a website that helps people manage student loan debt, found that more than half of current students and recent graduates said they would rather receive student loan help than a health plan, and more than half would rather receive help with their loans than a 401(k). Additionally, the benefit is helping companies attract young job seekers because it shows the organization is in tune with their needs, and focused on bettering their employees' lives.

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