Employer Insights on Student Loan Benefit

In the ever-evolving landscape of employee benefits, student loan repayment assistance programs are emerging as pivotal in attracting and retaining top talent. The recent SoFi at Work webinar, “Student Loan Repayment: Employer Perspectives,” brought together industry experts to discuss this critical topic. The webinar provided a wealth of insights and actionable advice, highlighting the growing importance of these programs in today’s competitive job market.

The Growing Importance of Student Loan Assistance Programs

The discussion opened with an emphasis on the increasing significance of student loan employee assistance programs. As student loan debt continues to burden millions of Americans, more companies are recognizing the value of incorporating student loan assistance into their benefits packages. This helps alleviate financial stress for employees and enhances the company’s appeal, making it a more attractive workplace.

While total loan forgiveness approved by the Biden-Harris Administration has jumped to $167 billion for 4.75 million borrowers, that still leaves roughly $1.73 trillion in student debt outstanding for 43.2 million borrowers. The three panelists did not miss this, with each citing how student debt was currently impacting their ability to attract and retain talent.

Recommended: Helping Employees Make Smart Student Debt Decisions: The Urgent Need for HR Support

How Companies are Implementing Student Loan Benefits

During the webinar, speakers shared various strategies and models for implementing student loan assistance benefits. Some companies opt for direct contributions to employees’ loan balances, while others provide resources and tools to help manage debt more effectively. The flexibility of these programs allows employers to tailor their approach based on company size, budget, and specific employee needs.

Heidi Henneff, Athletico’s Director of Benefits, an expert at the event, discussed her company’s approach: “We stood up a direct repayment program, and we had partnered with SoFi for a couple of years, so they were our natural partner to extend this offering to our employees.” This collaboration with SoFi enabled them to set up a robust program that directly addresses the needs of their workforce.

Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?

The Impact on Employee Retention and Recruitment

One of the key points discussed was how student loan repayment benefits positively impact employee retention and recruitment. Data and case studies presented during the webinar showed that such benefits not only help retain employees but also make a company more attractive to prospective hires. Younger employees and recent graduates, in particular, often prioritize potential employers who offer clear and tangible support for managing student debt.

Adam Corbin, Morgan Stanley’s VP of Benefit Operations, a panelist at the webinar, noted this and shared his company’s positive experience with SoFi, stating, “We started in March of 2015 and have utilized SoFi, you know, a lot for student loan debt, personal loan debt. And it’s really been a great partnership that we’ve had with them.” This partnership has allowed his company to effectively support employees in their new analyst hiring classes, demonstrating the tangible benefits of such programs.

Legislative Updates and Future Trends

The webinar also covered recent legislative changes, including tax incentives for employers who directly contribute to their employees’ student loans and those indirectly supporting student loans through the Qualified Student Loan Payment Matching provisions of the Secure 2.0 Act. These changes will likely further influence the adoption and expansion of student loan benefits across different industries.

Looking ahead, Chipotle’s Director of Global Benefits, Daniel Banks, shared exciting news about Chipotle’s latest initiative: “We just launched the student loan matching program tied to the secure 2.0 act with SoFi at the start of this year.” This program represents a forward-thinking approach to employee benefits, directly responding to the evolving needs of the workforce and the ongoing student debt crisis.

The Takeaway

The SoFi at Work webinar provided a comprehensive overview of student loan repayment benefits’ current state and future potential. Implementing such benefits is a significant step forward for companies aiming to attract and retain a dedicated and talented workforce. As this area of employee benefits continues to develop, staying informed and adaptable will be crucial for success.

This webinar underscored the importance of student loan assistance programs and equipped attendees with the knowledge and inspiration to advocate for and implement these benefits within their organizations. The insights shared by Adam Corbin, Heidi Henneff, and Daniel Banks, among others, highlighted these programs’ practical impacts and strategic importance in today’s workforce landscape.

Watch the webinar to learn more

Photo credit: iStock/miniseries

Products available from SoFi on the Dashboard may vary depending on your employer preferences.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.

SoFi Student Loan Refinance Loans, Personal Loans, Private Student Loans, and Mortgage Loans are originated through SoFi Bank, N.A., NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org ). The Student Debt Navigator Tool and 529 Savings and Selection Tool are provided by SoFi Wealth LLC, an SEC-registered investment adviser. For additional product-specific legal and licensing information, see SoFi.com/legal. 2750 E. Cottonwood Parkway #300 Cottonwood Heights, UT 84121. ©2023 Social Finance, Inc. All rights reserved. Information as of November 2023 and is subject to change.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOAW-Q324-002