A growing number of companies are adding student loan repayment assistance benefits to help attract and retain employees. However, more than four in 10 either will rethink their current strategy – or are unsure of their plans to make changes – in the wake of the Biden administration's new policy to cancel some loans.
The administration is directing the U.S. Department of Education to cancel $10,000 in federal student loan debt for borrowers earning less than $125,000 annually. Pell Grant recipients will see up to $20,000 eliminated. According to the White House, this initiative will assist up to 43 million borrowers, including eliminating the full remaining balance for roughly 20 million people.
In a survey by the International Foundation of Employee Benefit Plans, 11% of employers are considering revisiting their current repayment strategy, 58% do not plan to change current policies and 31% are not sure.
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