Student loans and the employer-aided benefit reimbursement story have been in the news for quite a while now. The society of Human Resource Management’s report indicates that only 3 percent of the total employers of the state are offering this perk to their employees at the moment. This is expected to get better. How?
Student loans and how they can tone up:
Recently some big companies have been announcing their own student loan repayment benefit plans. High-profile enterprises like Pricewaterhouse Coopers and Fidelity are among those who recently made the declarations. Add this to the fact that almost all of the presidential applicants are pitching their solutions to deal with the 1.3 trillion dollar student loan debt, it all can make a lot more employers make the decision sooner rather than later too.
Student loan programs or the tuition reimbursement programs are those in which an employer covers and predominantly reimburses the education costs for those employees who have stayed with the company for quite some time. Federal companies and public interest organizations have already got loan repayment assistance plans but we believe many other companies will soon follow including the private sector employers.
These plans aren’t very cumbersome to understand or get your head around either. They don’t even have a set doctrine of rules to follow-as of yet. In simple words, what happens is that your employer agrees to cover some of your tuition or academic fee or reimburses you after a specific period of time. They can agree to paying off your student loans or just provide you with the money to deal with the fee yourself.
This is something that we all look forward to because with the ever-increasing student loan debt, the economy is getting affected for the worse; let’s hope we hear good results soon.
