NEW YORK – April 18, 2022 – (Newswire.com)
For anyone with student loan debt, which is currently around 43 million people in the United States, May will be an interesting month. On May 1, student loan default collections will resume after pausing during the pandemic, that is, unless the government decides to continue the pause.
Student loan debt is a burden that college graduates carry for several years after leaving school. Getting help paying off their student loans is now one of the main goals when looking for that first job after college. Employers know this and many have student loan repayment assistance programs in place.
But if the president decides not to resume the break, there are other options for student borrowers. An employer may have a student loan assistance program in place. Worth researching before giving a review. student loan debt consolidation options. Employees can also ask their employer to implement something if a program doesn’t already exist at your workplace. Here are some of the most compelling arguments to support this:
1. Employee student loan payments are tax deductible
The CARES Act of 2020 made employer contributions to student loan repayments tax deductible up to $5,250 per year. Previously, a business could only deduct tuition reimbursements. An employer should know that they can either give this money to Uncle Sam or use it to help employees repay their student loans.
2. Your employer’s competitor already offers it
This one takes some research, but many employers have student loan repayment programs in place, but not all. Check the company’s competitors to see if they offer it and use that as an argument to implement a similar program.
3. Offer a long-term commitment for student loan payments
It is a simple exchange. Offer your employer a long-term commitment in exchange for student loan repayment assistance. Estimate employee replacement cost and use it with the reasoning that having a student loan repayment program in place will help attract new talent to the company, making them more competitive in a labor market. hard work.
4. Financial stress drives up company healthcare costs
Harvard University and Stanford have both conducted studies in recent years showing that work stress increases health care costs by 5-8%. Student loan debt causes stress for so many people. Higher stress levels reduce worker productivity, another reason why the company should do everything it can to mitigate it.
5. Take the initiative and map out how to do it
The best way to close a deal is to remove all weak points from the prospect. A boss may turn you down if the program seems like too much work to set up. Find a provider that provides the service to them, such as SoFi or Commonbond, and explain how to set up the new program. Make it easy for them and your chances of success will be much better.
The pitch: there are several incentives to do so
There are several incentives for your company to implement a student loan repayment program. Contributions are tax deductible, competitors are already doing it, employee retention will be better, health care costs should go down, and you’re ready to set it up for them. It seems like a very good deal. Put it like that and you might get the help you need.
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