Data Details: What’s the Real ROI of a Student Loan Benefit?

by Ryan Gardner | May 30, 2018

Data Details: What’s The Real ROI of a Student Loan Benefit?

The cost of tuition for degrees continues to rise, seemingly without an end. The U.S. Department of Education provides statistics that are neither shocking nor comforting

It reveals the continued trend of ever increasing cost of college education. Forbes recently reported that student debt has now become the second highest consumer debt category after mortgage loans. As students come out of college and seek employment, finding the right job that can help reduce this burden becomes crucial.

WHY OFFER A STUDENT LOAN BENEFIT?

Due to the current debt trends, it comes as no surprise that college graduates are now taking up side jobs just to help pay off their debt. Under such conditions, most new employees judge their job satisfaction with their ability to pay off mountains of debts and bills. Vacation time, work from home policies, health insurance, and competitive salaries may not be enough to satisfy many recent college graduates.

By focusing on helping employees pay off their debt, you directly address a crucial concern. This appeals tremendously to new employees, in turn reducing turnover and improve retention rates. In the long run, this approach leads to company-wide savings and increased revenue.

HOW STUDENT LOAN BENEFITS WORK

Student loan benefits provide multiple benefits to the employees through their employer to help them tackle their debt. The benefits that Student Loan Genius offers includes one-on-one debt consulting and web tools backed by proprietary Loan Brain Algorithms that model payoff plans based on the employee’s current situation and future goals. Perhaps the most attractive benefit Student Loan Genius provides is the ability to directly contribute towards employees’ student loans.

RETURN ON INVESTMENT AND IMPROVING RETENTION

The ROI for a student loan benefit plan can exceed 200%. Many teams see the ROI as simple math. For example, about 20% of employees have student loans. A $50-per-month contribution for each employee results in about 5 retained employees. The retention leads to about 201% ROI per year, or about $304k per year. This can make a tremendous difference in the quality of the workers in the company. When employees stay with the company longer, they can valuably grow within the company.

At Student Loan Genius, we want to build a relationship with your company to make sure your employees have all the student loan help they need, while making sure your company achieves the desired retention success.

RETURN ON INVESTMENT AND IMPROVING RETENTION

Workforce demonstrates how important student loan repayment benefits are, reporting that a survey of over 5,000 job seekers ranked a student debt repayment plan as a highly desirable option in a benefits package. This comes as no surprise given that a high student debt leads to lifelong problems. A Gallup poll even confirmed that student loan debts cause a significant decrease in five key long-term measures of well-being, including financial, social, purpose, community and physical health.

It’s not hard to see why graduates need more help than ever with the second highest debt in the country. Job seekers are extremely attracted to job benefit packages that include help like student debt repayment and loan debt consultations. Benefits like these are proven to keep new employees at the company, increase job satisfaction, reduce turnover and ultimately save you and your company time and money. If you are interested in offering a student loan benefit, let us know.

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by Ryan Gardner | May 30, 2018

by Ryan Gardner | May 30, 2018

by Ryan Gardner | May 30, 2018