Credit: Creativa Images/Adobe Stock
Three years and nine extensions later, the longstanding federal student loan payment pause will expire. Interest on those loans began accruing on Sept. 1, and nearly 46 million borrowers will need to start making payments in October. (There's no chance of further payment pause extensions, due to a provision in the debt ceiling deal passed by Congress on June 2.) Borrowers who left school in 2020 or later will need to gear up for their first-ever student loan payments.
Impact on employers
Education assistance benefits matter to employers as much as to their employees. Financial insecurity aggravated by student debt affects workers' wellbeing and job performance, inhibits the development of critical skills, contributes to employee turnover — and requires innovative solutions by employers. A 2022 survey through a leading financial services firm found 59% of young workers place a higher value on laying off student loan debt than saving for retirement, home ownership, and emergencies. Organizations taking steps to address this debt typically see greatly improved retention and engagement.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
