Student loans weigh heavily on the minds of many Americans. Combating student loan angst for employees and customers is the fuel for new solutions and legislation that are available for a broad group of organizations—including employers, financial institutions, government agencies, and professional associations.
Due to an increasing number of borrowers speaking up about their plight, many companies are offering student loan repayment and counseling help.
According to Society for Human Resources Management, "For managers and human resources professionals, overwhelming student loan debt [can lead to] staffers being distracted and unfocused at work and steer them toward moonlighting jobs that further sap their physical and emotional energy."
The problem is big enough that Congress passed legislation to support and protect student loan borrowers.
- Congress recently extended the tax-free status of employer-made student loan payments (up to $5,250 annually) through December 2025 through the Consolidated Appropriations Act.
- The U.S. Senate passed legislation to stop student loan debt relief scams.
Providing student loan counseling expertise is key to protecting borrowers. It's not illegal to offer services that alleviate confusion. However, promising debt relief or forgiveness and charging student-paid fees for services that are available for free is questionable and at a minimum exacerbates this national dilemma.
79% of borrowers said they would utilize a trustworthy and established student loan counseling service if one was offered by their school, bank or employer. (Source: Successfully Navigating Student Loan Repayment white paper.)
Now more than ever student loan borrowers need help.
Organizations can fill the gap and provide personalized support. They help employers, banks, credit unions, and other organizations deliver the high touch counseling support their workforce and customers need.
WATCH for our upcoming blog post that dives deeper into the legislation allowing employer-made student loan payments, tax-free.
