The Student Loan Crisis
Student loan debt is the #1 financial stressor for employees under 40. The average student loan balance is $37,000, and many employees — particularly those with graduate or professional degrees — carry $100,000 or more. Student loan debt delays home ownership, retirement savings, and family formation — creating significant financial stress that affects health and productivity.
SECURE 2.0 Student Loan Match
The SECURE 2.0 Act (2022) allows employers to match employee student loan payments with 401k contributions. Employees who are paying down student loans instead of contributing to their 401k can now receive employer matching contributions based on their loan payments. This is a significant benefit that addresses both student loan debt and retirement savings simultaneously.
Student Loan Assistance as a Recruiting Tool
IQ Insight
Student loan assistance programs are one of the most effective recruiting tools for employers competing for younger workers. A 2024 survey found that 86% of employees under 35 would commit to an employer for 5 years in exchange for student loan assistance. For employers competing for nurses, engineers, teachers, and other professionals with significant student debt, student loan assistance is a powerful differentiator.