In our discussions with potential clients, employers commonly ask about lifetime maximum caps on their student loan contributions for employees. Hoping to draw comparisons to other benefits. In this post, we’ll describe the best practices surrounding this concept.
In our experience, employers rarely ever utilize a capped contribution concept. Most companies contribute until the employee’s student loans are fully paid off. The logic here is that the company is making a wise (and modest investment) several years down the road if its $50 contribution is continuing to incentivize a long-term employee to stay. Beyond the financial return, many employers like to be a part of the employee’s magic moment of becoming student debt-free. Creating a shared achievement.
When considering offering Student Loan Assistance contributions for your employees, lifetime maximum contribution caps are a plan specific to avoid. To learn more about other FAQs and program insights you can visit our webpage on the topic here: https://www.getpeanutbutter.com/faqs/.