Greg's Corner

Is student loan debt relief the new 401k?

In the past, most employers provided a helpful benefits package to their employees. Robust health and dental plans along with a helpful 401k plan used to be the norm. A number of employers even had a program where you could be reimbursed for your college education if you attended classes while working for the company. Unfortunately, since the financial crash of 2008 a lot of employers have started scaling back on the amount of benefits that they offer. The financial crash also resulted in higher amounts of debt for college students who took out student loans in order to pay for their education.

Now, some companies are offering a student debt relief plan as part of their employee benefits to attract recent college graduates. Much like a 401k, the company matches an employee’s deduction amount, and the plans can give out up to $1200 a year for six years. While it doesn’t completely wipe out a student’s debt it can take years off the payback process.

If this practice becomes more widely accepted by more companies do you think this will encourage more people to seek a college education? Please let us know in the comments.