Student debt has more than doubled over the last two decades, affecting millions of U.S. employees. As a result, an increasing number of employers are considering offering educational assistance programs to attract and retain top talent, reports SHRM. These programs not only provide financial support to your employees, they help to reduce their financial stress. Such programs also help address wealth, gender and racial inequality that contributes to higher amounts of student debt, particularly among minority populations.
Thanks to the Consolidated Appropriations Act (CAA) of 2021, employers can offer employees up to $5,250 annually in tax-free educational assistance, including tuition reimbursement programs and contributions toward student loans, until the end of 2025. However, while student debt assistance appears to be of value among potential candidates seeking out career opportunities, these programs are not widely offered among employers. Implementing such programs can be time-consuming and strain HR resources if done without proper preparation and the right partners.
