Yesterday, news broke that the federal moratorium on student loan repayments, which was set to end next month, would be extended through Aug. 31. Despite this latest (and fifth) extension, 46 million Americans are still in limbo, still preparing to start repaying a staggering debt of $1.75 trillion within a matter of months. The way employers respond, with the help of their advisers, can be a game changer that may help them win an overheated talent war.
For employees with student loan debt, Aug. 31 will mark the continuation of a personal finance crisis that has persisted since the onset of the pandemic. A recent Betterment at Work survey found that 41% of borrowers were forced to take on a second job due to financial instability since the start of the pandemic, and 69% had to dip into emergency funds. Not only can student loan debt weigh heavily on employees and their mental wellbeing, it also can make it harder for them to achieve other financial goals, such as saving for retirement.
