Your Employer Might Be Able to Help You With Your Student Debt, Here’s How
Not everyone can afford to go to college and get a degree, which is why those who wish to fulfill their dreams have to get a student loan one way or another. There are two types of student loans in the United States: first is the federal loan wherein you can apply to borrow money from the government, while the second is a private loan that lets you borrow money from private sectors such as lenders and banks. The main difference between the two is that federal loans usually have a borrowing limit, which usually forces the students to get a second loan if they don’t have enough.
For years now, it has been such a struggle for people who are trying to pay off their student debt, especially once they have already finished college. Once they get a job they have to start paying off their debt, and they usually have to make monthly payments for years until they are completely debt-free.
According to the most recent statistics, there are over 44 million people in the United States who are in student debt, and they owe a total of $1.5 trillion. It turns out that it is the employees’ responsibility to let their bosses know that they are in student debt since their company can help them come up with a payment plan that helps them pay back the loan as soon as possible.
Employers Concern About Student Loans
Young adults nowadays have the financial burden of student loans that they have to carry for several years, which can prove to be very challenging for most of them. This is why experts believe that it is important for employers to know if their employees are struggling with debt since it can have a massive impact on their everyday lives including how they work.
This is why more and more companies are actually trying to help college students who are freshly graduated, by offering them ways to pay off their student debt. Employers offer new employees another loan to be able to pay for their college dues faster, which means they’ll have to pay less interest at the end of the day. This process is very similar to remortgaging, but there are no 15 or 30-year fixed rates, and you don’t really end up with your own home once you pay off the debt.
The standard repayment term for a student loan from the government is 10 years, so if you manage to pay for it in less than a decade then you will be free from the interest payments that just keep on rising. Taking a loan from your company may seem like a publicity stunt to attract fresh graduates, but it could definitely be something that could eventually benefit the employees. Experts also say that the financial wellness of the employees must always be insured by their employers so if a company has tons of employees struggling with student debt, then it could definitely affect the overall image and performance of the company as a whole.
Financial Wellness
Based on the most recent survey from the United States of Stress by Everyday Health, the main reason why Americans get so stressed out is because of their personal finances. Not being able to manage the stress when it comes to money will definitely affect anyone’s health not just mentally, but also physically and emotionally. This is also the main reason why most companies in the country are now offering financial wellness programs.
The financial wellness program will help employees deal with their stress related to their personal finances. Most of the employees are struggling with debt, and so it can be almost impossible for them to work to their maximum potential if, at the back of their heads, they are so worried that they won’t be able to pay the bills.
The 2018 Employee Financial Wellness survey revealed that over 21 percent of employees actually think that financial wellness gives them freedom when it comes to financial stress. It makes them feel lighter since they are given tips on how to handle debts such as student loans, as well as unexpected expenses. Although it has not been implemented everywhere nor has it reached the Congress, it is very important for companies to take care of their employees’ well-being, especially if it has got to do with their mental state.
More in Career
-
Why American Consumers Are Falling Behind on COVID-Era Debt
When the world was grappling with the health crisis brought on by COVID-19, the U.S. economy faced an equally formidable challenge:...
November 27, 2023 -
Dr Dre and Ex-Wife Nicole Young Finalise $100m Divorce Settlement
After months of legal proceedings, Dr Dre, the legendary rapper, producer, and businessman, officially brought his tumultuous divorce from ex-wife Nicole...
November 22, 2023 -
5 Tell-Tale Signs That It Is Time to Say Goodbye to Your Current Job
Are you feeling like your job is more like a ball and chain than a fulfilling career? The daily grind, the...
November 19, 2023 -
WWE Signs $1.4 Billion Broadcasting Contract for SmackDown
In an explosive turn of events, World Wrestling Entertainment (WWE) has just unleashed some earth-shattering news for its legions of fans....
November 9, 2023 -
Navigating the Mortgage Maze as Interest Rates Take a Historic Leap
The U.S. housing market is nothing short of a dynamic entity. It evolves, reacts, and sometimes, just like the current real-estate...
November 3, 2023 -
Celebrity Couples Where the Woman Has a Higher Net Worth
In a world where gender roles and financial dynamics constantly shift, it’s not unusual to find celebrity couples where the woman...
October 27, 2023 -
Why the Gender Pay Gap Could Be Worsening
Picture this: Two college students, Alex and Charlie. Both are bright, have the same interests, and are ready to embrace the...
October 19, 2023 -
JC Penney’s Remarkable $1 Billion Revival Plan
In a remarkable turnaround, JC Penney unveiled a bold $1 billion revival plan, breathing new life into a brand that faced...
October 12, 2023 -
Shattering the American Dream: Mortgage Rates, Inflation & Cost of Living
You know that feeling when you are dreaming of something you have wanted for so long, only to watch it vanish...
October 6, 2023
You must be logged in to post a comment Login