40% of student loan borrowers are missing payments. 3 ways employers can help

Published 2 Min Read

A young Black woman looks at her laptop in frustration.
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In theory, student loan borrowers already have three monthly payments on the books — but in reality, some borrowers just aren’t paying up since payments resumed in October 2023.

According to the Department of Education, nearly 40% of student loan borrowers with their first deadline in October did not make payments by mid-November. Today’s average monthly loan payment of $210 to $314 equates to a 4-5% pay cut for the typical worker, meaning many borrowers simply cannot afford to meet payments. On TikTok, Gen Z borrowers are speaking out about sharing plans to boycott payments altogether, even at the risk of default and garnished wages. 

If employers have the means to reduce monthly payments or debt balances, it can make a world of difference. Notably, the SECURE Act 2.0 potentially makes this even easier by allowing employers to make matching contributions to loans, just as they would with 401(k) contributions. Now officially in effect, the SECURE Act 2.0 is bound to be on employers’ radars, and Smith recommends employers soon decide if this is the right contribution vehicle for their company. 

Read more: Student loan forgiveness take two: A look at Biden’s ‘Plan B’

Deanna Cuadra
Senior Reporter

Deanna Cuadra is a senior reporter at Employee Benefit News. Her work covers healthcare, U.S. policy and reform, challenges faced by women and parents in the workplace and innovation in work culture … Read full bio


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