CEO DATELINE - Bank association offers student loan repayments to employees
CEO DATELINE - Bank association offers student loan repayments to employees
- November 2, 2016 |
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Walt Williams
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The American Bankers Association will soon start helping employees pay off student loans—a perk a small but growing number of employers are using to attract top talent.
Beginning in December, ABA will provide eligible employees up to $1,200 per year toward the payment of student debt, in addition to their current compensation, the association announced Wednesday. All full-time and reduced work week employees are eligible.
ABA will contribute $100 per month toward each participating employee's student loans, up to a lifetime maximum contribution of $10,000.
"Student loan burden affects a significant portion of our nation's workforce—particularly millennials," ABA CEO Rob Nichols said. "ABA employees are working hard to advance the banking industry, and we want to help them reach their financial goals, whether it's buying a house, saving for retirement or pursuing further education."
Only three percent of employers offer student loan repayment, according to the Society of Human Resource Management. However, interest in such programs is growing. The Consumer Technology Association announced earlier this year it would pay employees $100 per month to help pay their student loans.
ABA didn't say how it was providing the employee benefit, but CTA contracted with the California startup Tuition.io to administer its own repayment program. The company helps businesses and other organizations offer student loan repayment options to their employees.
In addition to the newly announced student loan repayment program, ABA announced earlier this year it would raise its tuition reimbursement benefit from $10,000 per calendar year for undergraduate tuition and $20,000 per calendar year for graduate tuition. http://bit.ly/2fcR4EE
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