Employer assisted student loan repayment plans (SLRPs) are gaining popularity as recruitment tools for U.S. companies, and with good reason, what new grad wouldn’t want help paying down their student loans?
Student loan debt in Canada has reached $30 billion; in Alberta, between 2011 and 2017, student borrowing increased 50%. Safe to say that in any given business about 25% of employees under age 35 are repaying student loans.
With younger workers, the ones graduating right now - aka Gen Z - the percentage of university graduates with student loans increases to 50%.
Post-secondary education or training is always worth it, and the reality is at least half the emerging workforce will be burdened by debt before they even land a job.
Outstanding student loans cause stress; delay the pursuit of many life goals; and can inhibit the ability to fully participate in the company retirement savings plan. Any benefit that helps employees manage these concerns is a smart benefit.
YrP’s SLRP platform allows an employee with a student loan, or one who is paying down the student loan of a family member, the option to aggressively reduce the term and the cost of repayment.
Talk to us today if you want to learn how a Student Loan Repayment Plan, a SLRP, could help you and your employees.
Source: Alberta Student Aid Statistical Profiles 2016/17