On Tuesday November 1, 2016, Staples announced the launch of its student loan repayment plan for its employees. Staples follows the new trend of employers who are offering student loan repayment as a workplace benefit for employees burdened by student loan debt. Student loan repayment programs have become an attractive benefit for the graduates receiving them while also being beneficial to the employers that offer them.
Today, millennials are more focused on paying off their student loan debt compared to saving for retirement. As such, helping new graduates with their student loan debt creates a huge advantage in recruiting young talent. In light of this, loan repayment plans can be structured to incentivize and retain key younger employees. For example, some repayment programs set certain service requirements that must be met before paying loan benefits. Other repayment programs provide loan repayment funds with each paycheck, with the total amount growing the longer the employee stays at the company. Either way, employee loyalty comes with increasing rewards, which leads to employees being able to pay off their student loans sooner and then begin investing in their retirement.
If you require general business counseling, contact Butterfield Schechter LLP today with any questions on how we can help you and your business succeed.
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