Although only 9% of respondents now offer student loan repayment benefits, 16% are considering doing so. Repayment benefits slowly have been gaining popularity over the past few years, giving many organizations a competitive advantage in the challenging labor market. When asked whether their student loan repayment offerings have been successful in achieving workplace goals, employers responded that they have been successful in:

Retaining staff (45%)
Reducing staff financial stress (45%)
Attracting staff (31%)
Increasing staff engagement (24%)

For employers offering such benefits, a variety of approaches were cited:

45% pay the employee's lending institution directly rather than providing extra compensation to the employee
28% reported reimbursement or direct payment to the employee
21% said they offer refinancing of student loan debt
3% provide a corresponding match into the employee's 401(k) or other defined contribution account

Related: Biden's student-loan relief adds to inflation debate

Perceived unfairness among employees (such as resentment from employees who do not benefit) was the most common challenge faced by employers offering or considering student loan repayment benefits. This was reported by more than half of employers. Other challenges include financial burdens (53%) and administrative hassles (40%).

Instant Insights /

Biden's student-loan relief raises issues for employers

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