One of the biggest financial challenges for millions of employees in the United States is paying off student loan debt. According to the Federal Reserve, total student loan balances in the second quarter of this year hit $1.64 trillion—a number that has increased threefold in just two decades.
After the pause on student loan payments during the COVID-19 pandemic expired, many borrowers are struggling to keep up—delinquencies and defaults are at record highs. This has a severe negative impact on credit scores and employee well-being.
The heavy student loan debt burden isn’t just a significant obstacle for employees—it’s a problem for their companies. Financial stress can lead to employee disengagement, burnout, and turnover, which is why HR teams must help employees manage their finances more effectively.
Fortunately, when it comes to reducing student loan debt, HR teams have a wide range of resources. For example, unused PTO can be repurposed to help employees pay off their student loans—a budget-neutral solution that will improve employees’ financial situations without increasing costs for the company.
HR teams should be thinking more creatively about how they can ease the debt burden for their employees, and turnkey benefits like convertible PTO are valuable assets in this effort. By helping employees manage their student loan debt, companies won’t just improve their overall financial health—they will also improve retention and productivity.
Check out how you can help alleviate your employees’ student debt in our infographic below, then read the full article here!
How HR Teams Can Help Employees Alleviate their Student Loan Debt by BLR Media