When discussing the set-up of a Student Loan Assistance program with clients, there’s always a few recommendations we have for employers on what should be top of mind. In this post, we’ll outline these key elements in three rules of thumb.
In our experience, the rules of thumb below can help your company build an effective program:
- Start low and grow. Instead of a large contribution, start your program with a smaller monthly contribution then look to increase it in the second plan year. Understanding what’s been effective and how you can maximize on it in the future.
- Keep it simple. Make the program available to all full-time employees, just like most companies offer health insurance. This even makes it easier on the compliance side to offer the benefit tax-free. Plus, your program will draw the largest participation results with this set-up.
- Have shared accountability. Make employees responsible for their minimum monthly contributions while your company’s contributions help them get out of debt faster. With company contributions being processed as excess payments, employees can shave years off their debt during the life of their loan.
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