Under the 2021 update to the CARES Act, employers can offer a lump sum payment, spread it over 12 paychecks, or pay the loan servicer directly. Here are 5 reasons why you should consider the adoption of a Student Loan Repayment Program
Retain employees by demonstrating you care about their financial wellbeing
In today’s competitive job market, the question of how to retain employees is a key concern for many managers.
Retaining employees can be achieved by demonstrating that you care about their wellbeing, including financial health. Offering a student loan repayment program is an excellent way to achieve this.
Improve employee engagement by reducing financial stress
Financial stress can lead to a lack of engagement at work. This is because employees are not able to focus on the work and their tasks when they are constantly worried about their financial situation. This leads to lower productivity and higher absenteeism rates. Student debt is a significant source of financial stress, especially for those at earlier stages of their careers.
Gain a competitive advantage in recruiting
In such a tough job market, all employers should be thinking about their Employer Value Proposition and how they can stand out from the crowd when it comes to attracting talent. Competition for talent is fierce, especially for recent graduates - and offering student loan repayment assistance can be a significant factor in attracting that demographic.
Advance opportunities for women and BIPOC employees
It is an unfortunate truth that women and people of color carry the highest debt burden in our society. Offering a Student Loan Repayment benefit is a small but important way to show your support by doing something meaningful.
All assistance paid under a qualifying program is tax free for the employee, and tax deductible for the employer.
How can I implement a qualifying program?
Contact us today for a free CARES Act Student Loan Repayment Program Guide, that helps businesses and nonprofits adopt a program that meets the standards of the updated provision of the 2021 CARES Act update. The guide includes an implementation checklist, customizable templates for all required records, forms, and employee communication.