Biden and Trump's student loan and abortion policies impact employers

How Biden and Trump's views on abortion and student loans will impact employers

April 9, 2024 11:24 AM

As the November presidential election creeps closer to reality, President Joe Biden and former President Donald Trump are hitting the campaign trail. How will their plans and policies impact your workforce?

According to exclusive research by Arizent, the parent company of Employee Benefit News, 71% of survey respondents in a variety of professional services industries said they are very dissatisfied with the current political climate, while just 1% said they were very satisfied. When asked which political party would be most beneficial for their business, 40% said Republican, 33% said Democrat and 18% said there was no difference.

There are a few hot topics that will impact employers and employees alike, depending on who takes the White House in November. Arizent's data found that 20% of employers think reproductive rights in the wake of Roe v. Wade is the most urgent issue for the next administration and Congress to address, while financial issues like the economy and economic inequality were a top concern for 46% and 16% of those surveyed, respectively.

Just this week, both Biden and Trump hit the campaign trail to discuss highly contested issues like student loan forgiveness and reproductive rights. On Monday, Biden announced an alternative student loan forgiveness plan that would reduce or forgive debt for an estimated 25 million Americans. This is the latest effort in Biden's plan to forgive student loan debt, after persistent challenges from Republican lawmakers.

Meanwhile, Trump addressed reproductive rights in a video statement, saying abortion rights should be left up to individual states. Since Roe v. Wade was overturned by the Supreme Court in June 2022, reproductive rights have continued to be dismantled or restricted across the U.S. Most recently, in vitro fertilization coverage came under fire in Alabama, when the state supreme court ruled frozen embryos could be considered people, putting providers at risk of wrongful death lawsuits if those embryos were destroyed.

In March, the Supreme Court heard a case that could potentially restrict the use of abortion pills, putting access to care at an even greater risk for millions of Americans. A ruling is expected this summer.

What will all of this mean for employers, and how can they prepare for changes or disruptions to student loan forgiveness or reproductive rights? Catch up on a few of our top stories on these topics to understand your role as a leader — without letting politics get in the way.

Offer other ways to help with debt

Read:

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

According to the Department of Education, nearly 40% of student loan borrowers are already behind on their payments after the end of COVID-era pauses. 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. To help employers find solutions, Aaron Smith, co-founder of Savi, a platform dedicated to helping borrowers manage their student loan balances, shares his tips to establish or improve a student loan benefit.

Understand Biden’s ‘Plan B’

Read:

Student loan forgiveness take two: A look at Biden's 'Plan B'

Biden's latest proposal targets borrowers who owe more than they initially took out in loans due to interest, offering up to $10,000 worth of forgiveness. Borrowers who have been repaying their loans for 20 years or more, borrowers who are eligible for other existing relief programs like Public Service Loan Forgiveness, and borrowers who attended underperforming for-profit colleges may also be eligible for relief. On Monday, Biden further expanded on his plans to forgive debt for nearly 25 million borrowers. Catch up on his original policy.

Rethink degree requirements

Read:

3 steps to improve student loan relief after SCOTUS ruling

A recent survey found that nearly two-thirds (62%) of employers still require a degree for entry-level jobs. Given the high cost of education and mounting student loan debt, organizations should consider offering an employer-sponsored education reimbursement program such as tuition reimbursement accounts and student loan repayment benefits. These programs can help ease the financial burden of continued and previous education.

Review your healthcare plans

Read:

The fate of abortion care: Will the Supreme Court limit access to mifepristone?

Over 20 years since the FDA approved the commonly used abortion pill mifepristone, its safety is being put into question before the Supreme Court — and the verdict could result in a nationwide end to abortion care as we know it. Employers should pay close attention to not just this ruling, but cases at the state level, says Dr. Mary Jacobson, OB-GYN, clinical associate professor at Stanford University and chief medical officer at women's health provider Hello Alpha. They will need all the legal help they can get to ensure their healthcare benefits can actually care for their employees in an increasingly volatile political landscape, she stresses.

Ensure workplace safety practices

Read:

Is Slack safe? Why abortion advocates are calling on the chat platform to up privacy protections

In the wake of the overturning of Roe v. Wade, many employees are seeking discreet access to reproductive care, often turning to employers for help. But if those conversations take place on workplace chat platforms, they could end up being used against employees in a court of law. As an increasing number of states cut access to reproductive care or even criminalized it, nonprofit advocacy group Fight for the Future published an open letter to Slack, calling on the workplace communication platform to implement end-to-end encryption, where only users participating in the conversation can access its contents. The hope is that this would better protect abortion seekers who may be communicating with each other, colleagues or employers about company-provided resources and support.

Prepare for legal ramifications around reproductive benefits

Read:

Alabama has updated its IVF ruling. What can employers learn from it?

Employers began very seriously considering adding things like travel and lodging coverage, as well as creating exemptions for employees who needed to change providers in order to access fertility services or medications in the wake of Roe v. Wade being overturned, says Dr. Roger Shedlin, president and CEO of WIN, a family-building benefit provider. At the same time, there was increased interest in investing in benefit administrators that could better dictate what benefits would best support employees seeking fertility care. Employers should continue to ensure employees have access to benefits like IVF, abortion and more, while keeping in mind the risks.