As the total debt load continues to mount, thousands of employers have stepped up to help their employees by offering repayment assistance and optimization programs as part of their benefits packages. As the country moves back towards normalcy, now is the time to start thinking about whether your organization can improve the financial and emotional well-being of employees who have student debt.
The scope of the problem
There are 45 million student borrowers on the hook for $1.7 trillion of student debt. The total debt load has tripled over the past 15 years and continues to grow exponentially, faster than many other segments of the economy. Millennials have one of the highest student loan balances of any generation, averaging $34,504 in the first quarter of 2019 and more than 1 in 4 student loan borrowers are unable to afford their payments. Student debt exacerbates the racial wealth gap and is linked to lower homeownership rates, less consumer spending and fewer new small businesses.
