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Providing Student Loan Help to Newer Employees

December 31, 2019Uncategorized

When a potential member of the global workforce graduates, they often do so with the hopes of creating a positive ripple in the professional sphere. Some succeed in doing so, while others are not as successful. There can be any number of reasons for the latter not succeeding later in life. Lately, though, one of the more prominent reasons that have emerged, is that their host companies didn’t provide them with student loan help.

What Does Student Loan Help Entail

In short, it means the assistance a company provides to an employee, to help them pay off their student loans. This assistance could take the form of either financial help or some other facility that helps employees better allocate their finances towards paying off their study loans.

In this day and age, with great flexibility in terms of financial transfer and such, it has become easier to help someone along their way to financial freedom. On the enterprise side, there is a lot that can be done to help employees with their student loans.

For example, a company could:

  • Provide a monthly grant based on employee performance, that accumulates at the end of the year, and goes off to pay for that employee’s loans.
  • Create a flat budget, to be divided between all new hires at the end of each semester at the job.
  • Provide assistance with other expenses related to working at a company, such as fuel for transport, grocery, clothing and retail shopping. This will cause employees to allocate more of their salary to the student loans.
  • Create a co-payment system with the employee in question, in which you match their payment, whenever they make one.

In any case, companies collaborating with employees towards the payment of student loan is quickly becoming commonplace in the professional sphere.

Common Demands of Fresh Graduates

The majority of today’s workforce consists of millennials, who are quickly turning out to be the most demanding of all groups when it comes to facilities and benefits. However, today’s global workforce is also leading the charge in terms of technology and business progress.

This means that despite their demands being more diverse than ever, they’re not unreasonable. And, enterprises should consider the fact that all the talent of the modern workforce comes with a number of diverse benefits. To that end, the following are some of the common benefits that are expected among the younger lot, as well as, how you can provide them.

Company-Maintained Credit Cards

The workers of today have some genuine cause for concern when it comes to their collective financial situation. Even regular everyday spending has become a struggle for some who are living in more expensive locales. This is because of the overall poor economic situation.

Fortunately, companies are in a good position to help their new employees by providing a company-maintained credit card, which can either be fully or partially paid for by the company. In addition, companies can provide credit cards for clothing and retail purchases, such as a Banana Republic credit card. This will help employees take care of one major expense for each month, which is clothing.

Partner with Student Loan Assistance Firms

There are a number of companies that assist with paying off student loans. These companies could take care of the organizational processes associated with the repayment and human resource management process. In addition, provide actual funds that can then be relayed to the employees.

Depending on the resources your company already has, you can choose to go with a partner firm. This will take the repayment management out of your hands. All you will have to do is provide some additional payment, which the firm will then distribute among the eligible employees.

Set Up a Co-Pay Option

Companies can create a co-pay option which can provide employees with a set amount annually. This amount can depend on the performance of the employee or their tenure in the company. In addition, a co-pay can vary in terms of weightage, as in the performance of the employee can decide who gets to pay the larger share of the monthly or yearly payment.

This can be done by setting the amount at the time of hiring, and based on their profile.

Provide Student Loan Repayment Bonuses

Your annual and/or monthly bonuses are a good vessel for an added amount that could go towards an employee’s student loans. This can be done by calculating how much the employee has performed during the year and then handing out an amount. This can be either as the entire amount of the bonus, or a portion of it.

This will serve more as a symbolic bonus, and will improve retention.

Conclusion: Student Loan Help Made Easy

Taking on the responsibility of student loan repayment may sound challenging. However, with the dynamic workforce of today, some sacrifices have to be made. Plus, it’s all the more rewarding when those sacrifices result in major rewards, such as a satisfied employee.