Student loan repayment benefits are a great idea.
Did you know that more than 40 million Americans have outstanding student loans, totaling more than $1.2 trillion?
Some employers are helping out in a really cool way — by giving their employees money to pay down their student loans.
Well, not quite, but something along those lines.
Many businesses offer employees various perks as a way to keep talent for the long run. Whether it's in the form of health insurance, generous vacation policies, or year-end bonuses, these are fringe benefits businesses use to lure the best and brightest away from competitors and help retain their current employees.But some companies are getting creative by offering their employees cash bonuses for the explicit purpose of repaying student loans.
Natixis Global Asset Management is the latest company to offer this, giving employees $10,000 to repay student loans.
According to Natixis, the decision was made simply because they wanted to "put their money where their mouth is."
As an asset management company, Natixis emphasizes the importance of saving for retirement at an early age. Unfortunately, when there are loans to be paid, that's not so easy."We decided it was time we put our money where our mouth is, and make sure our own people are on sound financial footing," Tracey Flaherty, the senior vice president of retirement strategies at Natixis, told CNN.
Way to go, companies that acknowledge the burden of student loans! Now here's hoping Congress can find a long-term fix.
The skyrocketing cost of education (and the loans that result) needs to be addressed. When a college degree becomes a near requirement to survive in the workforce, the cost of college is extra burdensome.Some in Congress have pushed bills that would help cap tuition increases, determine where federal loans can be used, and lower interest rates. Even the president has gotten behind student loan reform. So far, this hasn't really gained a whole lot of traction. Graduates and companies like Natixis shouldn't necessarily have to foot the bill for student loans, but until Congress makes some changes, it's great to see companies helping their people out anyway. It's the right thing to do.