SlideShare a Scribd company logo

HR: Student Loan Repayment as Compensation

Sean Feeney
Sean Feeney
Sean FeeneyCloud Infrastructure Architect at Amazon

The current state of employee student loan burdens in the United States (as of 2015) along with best practices for improving recruitment and retainment while tackling the issue.

HR: Student Loan Repayment as Compensation

1 of 15
Download to read offline
Student Loan Repayment
as an Employment Benefit
Kelvin Chu
Sean Feeney
Background
● Traditionally, large employers trained their
own workforces (Examples: Nucor Steel,
Ford)
● With the expansion of compulsory (and
public) schooling in the early 1900s,
industry collaborated with local schools on
skills and curriculum required of their
incoming workforce
o Modern example: Kentucky Occupational Skill
Standards (KOSSA) high school assessment
o This also continues today in the form of candidate
pipelines at preferred colleges
The Perfect Storm
● As we became a post-industrial society
competing in a global knowledge economy,
college diplomas became a prerequisite to
the most basic of jobs
● This coincided with
o The American business community expanding the
socialization of workforce training costs through
collaborations with schools
o College tuition rates rising much more rapidly than
the cost of inflation
o Public funding of college attendance not keeping
up with the rising costs
The Perfect Storm (in charts)
Private lenders begin
lobbying Congress
to remove student loan
bankruptcy protections
The Perfect Storm (in charts)
Bankruptcy
Protections
The Perfect Storm (in charts)
Yellow is inflation-adjusted state financial aid paid per student.
Red is inflation-adjusted out-of-pocket tuition costs paid after all
non-loan financial aid is exhausted.
http://economix.blogs.nytimes.com/2012/03/02/why-tuition-has-skyrocketed-at-state-schools/?_r=0
Ad

Recommended

Two Professional Development Models for Financial Educators.
Two Professional Development Models for Financial Educators.Two Professional Development Models for Financial Educators.
Two Professional Development Models for Financial Educators.Barbara O'Neill
 
Critical Issues Paper-Return on Investment
Critical Issues Paper-Return on InvestmentCritical Issues Paper-Return on Investment
Critical Issues Paper-Return on InvestmentLaura Heilman, M.A.
 
The viability of human capital contracts in higher education financing
The viability of human capital contracts in higher education financingThe viability of human capital contracts in higher education financing
The viability of human capital contracts in higher education financingFletcher Hultman
 
Financial aid presentation power point final
Financial aid presentation power point finalFinancial aid presentation power point final
Financial aid presentation power point finalImobah
 
Managing education costs
Managing education costsManaging education costs
Managing education costsA.W. Berry
 
[18] Sept 2009 [E Pres] Judicial Review
[18] Sept 2009 [E Pres] Judicial Review[18] Sept 2009 [E Pres] Judicial Review
[18] Sept 2009 [E Pres] Judicial ReviewROSEMARY DC
 

More Related Content

What's hot

7 Report Body of Report
7 Report Body of Report7 Report Body of Report
7 Report Body of ReportAllison Newell
 
WP REVIEW GT Linkedin
WP REVIEW GT LinkedinWP REVIEW GT Linkedin
WP REVIEW GT LinkedinGaby Tazzini
 
Financial wellness and undergraduate students
Financial wellness and undergraduate students Financial wellness and undergraduate students
Financial wellness and undergraduate students Kristin O'Donovan
 
FinancialLiteracy_Final
FinancialLiteracy_FinalFinancialLiteracy_Final
FinancialLiteracy_FinalConnor O'Toole
 
Applied Summary Paper
Applied Summary PaperApplied Summary Paper
Applied Summary PaperBecky Smith
 
Swot Analysis on Northern University Bangladesh
Swot Analysis on Northern University BangladeshSwot Analysis on Northern University Bangladesh
Swot Analysis on Northern University BangladeshAl Shahriar
 
Dr. Hartman's Opening Address: Great American Higher Ed Highway
Dr. Hartman's Opening Address: Great American Higher Ed HighwayDr. Hartman's Opening Address: Great American Higher Ed Highway
Dr. Hartman's Opening Address: Great American Higher Ed Highwaydrkenhartman2006
 
Planning for Your Education Investment: Developing a Tuition Repayment Strategy
Planning for Your Education Investment: Developing a Tuition Repayment StrategyPlanning for Your Education Investment: Developing a Tuition Repayment Strategy
Planning for Your Education Investment: Developing a Tuition Repayment StrategyRasmussen College
 
Budgeting plan
Budgeting planBudgeting plan
Budgeting planvshackley
 

What's hot (10)

Dennis Pruitt CBMI 2014 enrollment management presentation
Dennis Pruitt CBMI 2014 enrollment management presentationDennis Pruitt CBMI 2014 enrollment management presentation
Dennis Pruitt CBMI 2014 enrollment management presentation
 
7 Report Body of Report
7 Report Body of Report7 Report Body of Report
7 Report Body of Report
 
WP REVIEW GT Linkedin
WP REVIEW GT LinkedinWP REVIEW GT Linkedin
WP REVIEW GT Linkedin
 
Financial wellness and undergraduate students
Financial wellness and undergraduate students Financial wellness and undergraduate students
Financial wellness and undergraduate students
 
FinancialLiteracy_Final
FinancialLiteracy_FinalFinancialLiteracy_Final
FinancialLiteracy_Final
 
Applied Summary Paper
Applied Summary PaperApplied Summary Paper
Applied Summary Paper
 
Swot Analysis on Northern University Bangladesh
Swot Analysis on Northern University BangladeshSwot Analysis on Northern University Bangladesh
Swot Analysis on Northern University Bangladesh
 
Dr. Hartman's Opening Address: Great American Higher Ed Highway
Dr. Hartman's Opening Address: Great American Higher Ed HighwayDr. Hartman's Opening Address: Great American Higher Ed Highway
Dr. Hartman's Opening Address: Great American Higher Ed Highway
 
Planning for Your Education Investment: Developing a Tuition Repayment Strategy
Planning for Your Education Investment: Developing a Tuition Repayment StrategyPlanning for Your Education Investment: Developing a Tuition Repayment Strategy
Planning for Your Education Investment: Developing a Tuition Repayment Strategy
 
Budgeting plan
Budgeting planBudgeting plan
Budgeting plan
 

Similar to HR: Student Loan Repayment as Compensation

United States Department Of Corrections
United States Department Of CorrectionsUnited States Department Of Corrections
United States Department Of CorrectionsAmanda Gray
 
Student Loans: What Financial Practitioners Need to Know
Student Loans: What Financial Practitioners Need to KnowStudent Loans: What Financial Practitioners Need to Know
Student Loans: What Financial Practitioners Need to Knowmilfamln
 
The Benefits Of College Education And Student Loan Debt
The Benefits Of College Education And Student Loan DebtThe Benefits Of College Education And Student Loan Debt
The Benefits Of College Education And Student Loan DebtAnn Johnson
 
my_buring_issue.pptx
my_buring_issue.pptxmy_buring_issue.pptx
my_buring_issue.pptxDemetriSelmer
 
Senator Moore College Affordability-Student Debt Op-Ed
Senator Moore College Affordability-Student Debt Op-EdSenator Moore College Affordability-Student Debt Op-Ed
Senator Moore College Affordability-Student Debt Op-EdEric J. Alves
 
Provost Advisory Committee for Students Board of Regents Recommendation
Provost Advisory Committee for Students Board of Regents RecommendationProvost Advisory Committee for Students Board of Regents Recommendation
Provost Advisory Committee for Students Board of Regents RecommendationElizabeth Pring
 
Benefits Of The Prepaid Plan
Benefits Of The Prepaid PlanBenefits Of The Prepaid Plan
Benefits Of The Prepaid PlanKelly Flores
 
An Increasing Cost of Higher Education...
An Increasing Cost of Higher Education...An Increasing Cost of Higher Education...
An Increasing Cost of Higher Education...Nupur Srivastava
 
We Must Have Even Higher Expectations For Teachers
We Must Have Even Higher Expectations For TeachersWe Must Have Even Higher Expectations For Teachers
We Must Have Even Higher Expectations For Teachersnoblex1
 
The Relationship Between Federal Financial Aid And Tuition...
The Relationship Between Federal Financial Aid And Tuition...The Relationship Between Federal Financial Aid And Tuition...
The Relationship Between Federal Financial Aid And Tuition...Casey Hudson
 
Screenplay Written by Yongyi CaiFADE INEXT. RAI.docx
Screenplay Written by Yongyi CaiFADE INEXT. RAI.docxScreenplay Written by Yongyi CaiFADE INEXT. RAI.docx
Screenplay Written by Yongyi CaiFADE INEXT. RAI.docxjeffsrosalyn
 
Annotated Bibliography.docx
Annotated Bibliography.docxAnnotated Bibliography.docx
Annotated Bibliography.docxfestockton
 
Running Head EVOLVING NEEDS OF COMMUNITY COLLEGE STUDENTS1EV.docx
Running Head EVOLVING NEEDS OF COMMUNITY COLLEGE STUDENTS1EV.docxRunning Head EVOLVING NEEDS OF COMMUNITY COLLEGE STUDENTS1EV.docx
Running Head EVOLVING NEEDS OF COMMUNITY COLLEGE STUDENTS1EV.docxtodd271
 
Essay On Public Service Loan
Essay On Public Service LoanEssay On Public Service Loan
Essay On Public Service LoanKrystal Ellison
 
Increasing Student Debt
Increasing Student DebtIncreasing Student Debt
Increasing Student DebtMelissa Wilson
 
Student Loan: Education Official Explains What Borrowers Should Know | Future...
Student Loan: Education Official Explains What Borrowers Should Know | Future...Student Loan: Education Official Explains What Borrowers Should Know | Future...
Student Loan: Education Official Explains What Borrowers Should Know | Future...Future Education Magazine
 

Similar to HR: Student Loan Repayment as Compensation (20)

United States Department Of Corrections
United States Department Of CorrectionsUnited States Department Of Corrections
United States Department Of Corrections
 
Student Loans: What Financial Practitioners Need to Know
Student Loans: What Financial Practitioners Need to KnowStudent Loans: What Financial Practitioners Need to Know
Student Loans: What Financial Practitioners Need to Know
 
The Benefits Of College Education And Student Loan Debt
The Benefits Of College Education And Student Loan DebtThe Benefits Of College Education And Student Loan Debt
The Benefits Of College Education And Student Loan Debt
 
my_buring_issue.pptx
my_buring_issue.pptxmy_buring_issue.pptx
my_buring_issue.pptx
 
Senator Moore College Affordability-Student Debt Op-Ed
Senator Moore College Affordability-Student Debt Op-EdSenator Moore College Affordability-Student Debt Op-Ed
Senator Moore College Affordability-Student Debt Op-Ed
 
Provost Advisory Committee for Students Board of Regents Recommendation
Provost Advisory Committee for Students Board of Regents RecommendationProvost Advisory Committee for Students Board of Regents Recommendation
Provost Advisory Committee for Students Board of Regents Recommendation
 
Benefits Of The Prepaid Plan
Benefits Of The Prepaid PlanBenefits Of The Prepaid Plan
Benefits Of The Prepaid Plan
 
An Increasing Cost of Higher Education...
An Increasing Cost of Higher Education...An Increasing Cost of Higher Education...
An Increasing Cost of Higher Education...
 
We Must Have Even Higher Expectations For Teachers
We Must Have Even Higher Expectations For TeachersWe Must Have Even Higher Expectations For Teachers
We Must Have Even Higher Expectations For Teachers
 
The Relationship Between Federal Financial Aid And Tuition...
The Relationship Between Federal Financial Aid And Tuition...The Relationship Between Federal Financial Aid And Tuition...
The Relationship Between Federal Financial Aid And Tuition...
 
Financial Aid Problems
Financial Aid ProblemsFinancial Aid Problems
Financial Aid Problems
 
The Importance Of Paying For College
The Importance Of Paying For CollegeThe Importance Of Paying For College
The Importance Of Paying For College
 
Screenplay Written by Yongyi CaiFADE INEXT. RAI.docx
Screenplay Written by Yongyi CaiFADE INEXT. RAI.docxScreenplay Written by Yongyi CaiFADE INEXT. RAI.docx
Screenplay Written by Yongyi CaiFADE INEXT. RAI.docx
 
Annotated Bibliography.docx
Annotated Bibliography.docxAnnotated Bibliography.docx
Annotated Bibliography.docx
 
Eliminating Tuition Essay
Eliminating Tuition EssayEliminating Tuition Essay
Eliminating Tuition Essay
 
Student Loan Debt
Student Loan DebtStudent Loan Debt
Student Loan Debt
 
Running Head EVOLVING NEEDS OF COMMUNITY COLLEGE STUDENTS1EV.docx
Running Head EVOLVING NEEDS OF COMMUNITY COLLEGE STUDENTS1EV.docxRunning Head EVOLVING NEEDS OF COMMUNITY COLLEGE STUDENTS1EV.docx
Running Head EVOLVING NEEDS OF COMMUNITY COLLEGE STUDENTS1EV.docx
 
Essay On Public Service Loan
Essay On Public Service LoanEssay On Public Service Loan
Essay On Public Service Loan
 
Increasing Student Debt
Increasing Student DebtIncreasing Student Debt
Increasing Student Debt
 
Student Loan: Education Official Explains What Borrowers Should Know | Future...
Student Loan: Education Official Explains What Borrowers Should Know | Future...Student Loan: Education Official Explains What Borrowers Should Know | Future...
Student Loan: Education Official Explains What Borrowers Should Know | Future...
 

Recently uploaded

The Story of Pharis Aboobacker.pptx
The Story of Pharis Aboobacker.pptxThe Story of Pharis Aboobacker.pptx
The Story of Pharis Aboobacker.pptxBhargavi M
 
Eni: fourth quarter and full year 2023 results
Eni: fourth quarter and full year 2023 resultsEni: fourth quarter and full year 2023 results
Eni: fourth quarter and full year 2023 resultsEni
 
Business brief document explanation forward
Business brief document explanation forwardBusiness brief document explanation forward
Business brief document explanation forwardCJHaight
 
DBX Investor Presentation - Q4 and FY 2023
DBX Investor Presentation - Q4 and FY 2023DBX Investor Presentation - Q4 and FY 2023
DBX Investor Presentation - Q4 and FY 2023Dropbox
 
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024Neil Kimberley
 
Trending Topics for events Presentation.pdf
Trending Topics for events Presentation.pdfTrending Topics for events Presentation.pdf
Trending Topics for events Presentation.pdfgaju619
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
publicpolicy-130621235359-phpapp02 2.pdf
publicpolicy-130621235359-phpapp02 2.pdfpublicpolicy-130621235359-phpapp02 2.pdf
publicpolicy-130621235359-phpapp02 2.pdfmmople
 
Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024Neil Kimberley
 
Medirom Healthcare Technologies Inc. Investor Presentation
Medirom  Healthcare Technologies Inc. Investor PresentationMedirom  Healthcare Technologies Inc. Investor Presentation
Medirom Healthcare Technologies Inc. Investor Presentationssusera2656e
 
edition features a handful of the Brands Of Honour- 2024.pdf
edition features a handful of the Brands Of Honour- 2024.pdfedition features a handful of the Brands Of Honour- 2024.pdf
edition features a handful of the Brands Of Honour- 2024.pdfinsightssuccess2
 
02.20 Webinar - Online Giving Trends.pdf
02.20 Webinar - Online Giving Trends.pdf02.20 Webinar - Online Giving Trends.pdf
02.20 Webinar - Online Giving Trends.pdfBloomerang
 
Sustainability Roadmap Infographics_final.pdf
Sustainability Roadmap Infographics_final.pdfSustainability Roadmap Infographics_final.pdf
Sustainability Roadmap Infographics_final.pdfJai Babu
 
The Coca-Cola Company Presentation at CAGNY 2024.pdf
The Coca-Cola Company Presentation at  CAGNY 2024.pdfThe Coca-Cola Company Presentation at  CAGNY 2024.pdf
The Coca-Cola Company Presentation at CAGNY 2024.pdfNeil Kimberley
 
HPM Panther (Captan 50% WP) Presentation
HPM Panther (Captan 50% WP) PresentationHPM Panther (Captan 50% WP) Presentation
HPM Panther (Captan 50% WP) PresentationHpm India
 
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYYIR
 

Recently uploaded (20)

The Story of Pharis Aboobacker.pptx
The Story of Pharis Aboobacker.pptxThe Story of Pharis Aboobacker.pptx
The Story of Pharis Aboobacker.pptx
 
Eni: fourth quarter and full year 2023 results
Eni: fourth quarter and full year 2023 resultsEni: fourth quarter and full year 2023 results
Eni: fourth quarter and full year 2023 results
 
Business brief document explanation forward
Business brief document explanation forwardBusiness brief document explanation forward
Business brief document explanation forward
 
DBX Investor Presentation - Q4 and FY 2023
DBX Investor Presentation - Q4 and FY 2023DBX Investor Presentation - Q4 and FY 2023
DBX Investor Presentation - Q4 and FY 2023
 
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024
 
Trending Topics for events Presentation.pdf
Trending Topics for events Presentation.pdfTrending Topics for events Presentation.pdf
Trending Topics for events Presentation.pdf
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
publicpolicy-130621235359-phpapp02 2.pdf
publicpolicy-130621235359-phpapp02 2.pdfpublicpolicy-130621235359-phpapp02 2.pdf
publicpolicy-130621235359-phpapp02 2.pdf
 
Bryan_Cassady - AI Powered Innovation.pdf
Bryan_Cassady - AI Powered Innovation.pdfBryan_Cassady - AI Powered Innovation.pdf
Bryan_Cassady - AI Powered Innovation.pdf
 
Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024
 
Medirom Healthcare Technologies Inc. Investor Presentation
Medirom  Healthcare Technologies Inc. Investor PresentationMedirom  Healthcare Technologies Inc. Investor Presentation
Medirom Healthcare Technologies Inc. Investor Presentation
 
Pan Dhoni - Modernizing Data And Analytics using AI.pdf
Pan Dhoni - Modernizing Data And Analytics using AI.pdfPan Dhoni - Modernizing Data And Analytics using AI.pdf
Pan Dhoni - Modernizing Data And Analytics using AI.pdf
 
edition features a handful of the Brands Of Honour- 2024.pdf
edition features a handful of the Brands Of Honour- 2024.pdfedition features a handful of the Brands Of Honour- 2024.pdf
edition features a handful of the Brands Of Honour- 2024.pdf
 
02.20 Webinar - Online Giving Trends.pdf
02.20 Webinar - Online Giving Trends.pdf02.20 Webinar - Online Giving Trends.pdf
02.20 Webinar - Online Giving Trends.pdf
 
Sustainability Roadmap Infographics_final.pdf
Sustainability Roadmap Infographics_final.pdfSustainability Roadmap Infographics_final.pdf
Sustainability Roadmap Infographics_final.pdf
 
Martez Knox - How AI is Redefining the Cannabis Industry (Final) (2).pdf
Martez Knox - How AI is Redefining the Cannabis Industry (Final) (2).pdfMartez Knox - How AI is Redefining the Cannabis Industry (Final) (2).pdf
Martez Knox - How AI is Redefining the Cannabis Industry (Final) (2).pdf
 
The Coca-Cola Company Presentation at CAGNY 2024.pdf
The Coca-Cola Company Presentation at  CAGNY 2024.pdfThe Coca-Cola Company Presentation at  CAGNY 2024.pdf
The Coca-Cola Company Presentation at CAGNY 2024.pdf
 
HPM Panther (Captan 50% WP) Presentation
HPM Panther (Captan 50% WP) PresentationHPM Panther (Captan 50% WP) Presentation
HPM Panther (Captan 50% WP) Presentation
 
Authentically Social by Corey Perlman (MyBOD)
Authentically Social by Corey Perlman (MyBOD)Authentically Social by Corey Perlman (MyBOD)
Authentically Social by Corey Perlman (MyBOD)
 
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
 

HR: Student Loan Repayment as Compensation

  • 1. Student Loan Repayment as an Employment Benefit Kelvin Chu Sean Feeney
  • 2. Background ● Traditionally, large employers trained their own workforces (Examples: Nucor Steel, Ford) ● With the expansion of compulsory (and public) schooling in the early 1900s, industry collaborated with local schools on skills and curriculum required of their incoming workforce o Modern example: Kentucky Occupational Skill Standards (KOSSA) high school assessment o This also continues today in the form of candidate pipelines at preferred colleges
  • 3. The Perfect Storm ● As we became a post-industrial society competing in a global knowledge economy, college diplomas became a prerequisite to the most basic of jobs ● This coincided with o The American business community expanding the socialization of workforce training costs through collaborations with schools o College tuition rates rising much more rapidly than the cost of inflation o Public funding of college attendance not keeping up with the rising costs
  • 4. The Perfect Storm (in charts) Private lenders begin lobbying Congress to remove student loan bankruptcy protections
  • 5. The Perfect Storm (in charts) Bankruptcy Protections
  • 6. The Perfect Storm (in charts) Yellow is inflation-adjusted state financial aid paid per student. Red is inflation-adjusted out-of-pocket tuition costs paid after all non-loan financial aid is exhausted. http://economix.blogs.nytimes.com/2012/03/02/why-tuition-has-skyrocketed-at-state-schools/?_r=0
  • 7. The Problem So what is “the other 98%” to do at the risk of being unemployable? Take on student loans to cover the difference. http://www.motherjones.com/politics/2013/06/student-loan-debt- charts Bankruptcy Protections
  • 8. The Problem 70% of undergrad students, of your employee pipeline, now have student loan debt burdens.1,4 Student loan debt disproportionately affects minorities and those from less advantaged households. ● 81% of African-American grads have student loan debt.2 1. http://blogs.wsj.com/numbers/congatulations-to-class-of-2014-the-most-indebted-ever-1368/ 2. https://cdn.americanprogress.org/wp-content/uploads/2012/10/WhiteStudentDebt-5.pdf 3. http://hereandnow.wbur.org/2012/05/15/student-loans-debt 4. Student Debt and the Class of 2013 - Institute For College Access and Success The class of 2014 owed an average of $33,000 per student.1 10% of students owe more than $54,000.2 3% of students owe more than $100,000.3
  • 9. Why Should HR Care? ● Financially unstable employees are more likely to job hop, seeking higher pay to try and cover student loans which have no legal recourse for discharge. ● Student loan lenders are known to actively research work phone numbers and disrupt your employees at work, hounding them for repayment. ● Student loans disproportionately affect minorities, making it that much more difficult to recruit and retain a diverse workforce. ● Studies have found that “cumulative student loans [are] significantly and inversely associated with better psychological functioning.” Sick of our loans: Student borrowing and the mental health of young adults in the United States - Walsemann, Gee, Gentile
  • 10. Why Should HR Care? Studies have shown that higher levels of debt can lead to stress, which can ultimately lead to health issues ● ex. high blood pressure, heart disease, anxiety, weaker immune system ● This would in turn increase healthcare costs for businesses The high price of debt - Sweet, Nandi, Adam, McDade
  • 11. The Opportunity ● With the competition for talent being fierce, companies are turning to exotic / fringe benefits to recruit and retain employees. (Examples: Facebook, Google) ● To stand out to prospective employees, and retain the ones you have, you should offer student loan reimbursement as a form of compensation. (NPR) - Kelsey Griffith of Ottawa, OH, graduated with a 4-year degree from Ohio Northern University with $120,000 in debt. The payments start at $900/mo. http://hereandnow.wbur.org/2012/05/15/ student-loans-debt
  • 12. The Small Leap to SL Reimbursement ● Many companies, acknowledging the edge that higher education offer its workforce, have long offered tuition assistance as a form of benefit. ● This benefit is often structured as a reimbursement after a course has been completed. ● We propose expanding this into post- tuition reimbursement (student loan repayment).
  • 13. Best Practices - Retain “While a repayment program will likely bring significant costs, it will pay dividends in the long run.” -Ann Hollingsworth, HR, Memorial Hermann Health System ● MHHS in Houston, Texas is one of the latest employers to set up a student loan repayment benefit program. ● Full-time and part-time employees who have earned a degree within the last three years are eligible. ● Employees must commit to stay with MHHS for at least two years after the final loan repayment. ● The program is paid for through the lower, overall cost of hiring people due to a higher retention rate and increased productivity from more engaged employees. http://www.bizjournals.com/houston/morning_call/2015/02/ major-houston-employer-to-help-repay-employees.html
  • 14. Best Practices - Recruit ● Montana found it difficult to recruit public school teachers in rural areas. ● The Office of Public Instruction set up a student loan repayment assistance program for targeted areas. ● Teachers were eligible for student loan repayment assistance of up to $3,000 a year for four years, for a total of up to $12,000. ● 141 teachers were awarded $417,000 in student loan repayment assistance. ● Mississippi has a similar program. http://www.kaj18.com/news/mt-teachers-in-critical-shortage-areas-may-get-student-loan-help/ http://higherednotdebt.org/blog/montana-wants-employers-pay-employees-student-loans If Montana HB341 passes, all Montana employers would get a tax credit of up to $450/ employee annually for up to three years against either their corporate or individual tax income, if they directly kick in $1,800 to lower their employee’s student loan debt.
  • 15. Best Practices - Public Sector ● If your employees qualify as public servants, the Consumer Financial Protection Bureau recommends structuring your student loan repayment program around existing government student loan forgiveness programs. ● Help your employees fill out the Public Service Loan Forgiveness (PSLF) paperwork. ● Directly make the monthly loan payments for your employees, instead of providing the benefit in a lump-sum. Cincinnati City Councilman P.G. Sittenfeld in 2014 announced the city’s College Affordability Assistance Program, which educates employees about PSLF and helps them with the paperwork. http://files.consumerfinance.gov/f/201308_cfpb_public-service-toolkit.pdf