{"id":8566,"date":"2022-04-14T13:59:09","date_gmt":"2022-04-14T20:59:09","guid":{"rendered":"https:\/\/www.pihra.org\/?p=8566"},"modified":"2022-04-15T15:58:57","modified_gmt":"2022-04-15T22:58:57","slug":"betterment-at-work","status":"publish","type":"post","link":"https:\/\/www.pihra.org\/staging\/pihra-news\/betterment-at-work\/","title":{"rendered":"Employers Step Up and Stand Out with Student Loan Help"},"content":{"rendered":"

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Employers Step Up and Stand Out with Student Loan Help<\/span><\/h1>\n

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Your staff could very well be loaded up with student loan debt. Heck, you might even have some yourself. None of this is news. But as student loan debt continues to snowball in the U.S.\u2013up to $1.75 trillion as of late 2021\u2013 you may be less familiar with the all-hands-on-deck mentality many employers are now taking toward the problem. Companies are getting off the sideline and taking a more active role in helping their workers manage student loans. Here\u2019s how and, more importantly, why.<\/p>\n

Why companies are adding student loan help to their benefits toolbox<\/strong>
\nThe story of how companies came to help with student loans is really the story of the 401(k), or more specifically, why so many employees weren\u2019t touching theirs. A mystery at first, the answer has grown increasingly clear: it\u2019s tough to save for the future when you\u2019re still paying off the past. For employees with student loans, every dollar in their paychecks can represent a zero-sum decision. Do they service their student loans or contribute to their 401(k)?<\/p>\n

In recent years, however, both employers and employees have signaled a growing expectation to work together on the issue. More than half (57%) of employees believe their company should help them pay off student loans according to exclusive Betterment research on employee financial wellness.<\/p>\n

Savvy companies have taken the issue to heart. By complementing their 401(k) with student loan management, they can offer a more holistic compensation package, one that accounts for the drag student loan debt now has on the workforce as a whole. The benefits are numerous:<\/p>\n

Recruiting and retention advantages<\/strong>
\nWhen it comes to benefits packages, 401(k)s have become the standard. Translation: beyond a generous match, they don\u2019t always differentiate your company from others. Offering something of unique value can not only attract top talent but keep it. Nearly 9 out of 10 (86%) of young workers say they’d stay at least five years with a company if it helped with student loans.<\/p>\n

Two-way tax benefits<\/strong>
\nJust like with 401(k)s, offering your staff a student loan management tool is one thing, but the real magic lies in the match. Why is that? It unlocks tax perks for both parties. Thanks to legislation passed by Congress in 2020 (aka the CARES Act), companies can make tax-free annual contributions of up to $5,250 toward their employees\u2019 student loans. This translates into a benefit that lowers both your company\u2019s payroll taxes and your employees\u2019 income taxes. This tax-free treatment is approved through 2025, and support is building for making it permanent.<\/p>\n

What to look for in a Student Loan Management tool<\/strong>
\nFirst and foremost, you want a streamlined admin experience. For many benefits admins, adding another vendor on top of their 401(k) provider is a non-starter. The last thing you need is another login. With Betterment, you can get both benefits synced and served up at the same time. If you\u2019re already familiar with Betterment\u2019s 401(k) product, Student Loan Management slots into that experience seamlessly.<\/p>\n

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Last but certainly not least, you want a tool that also makes your employees\u2019 lives easier. Similar to the admin experience, we give your participants a clearer financial picture of their student loans and 401(k) all in one place. We also go the extra mile by helping them balance the competing demands of debt and investing. This tension, after all, is a big reason for student loan help\u2019s rise as a bona fide benefit. It\u2019s our mission to help you and your staff ease it.<\/p>\n

Registration for CAHR22 is open now<\/a>. Take advantage of a variety of attendance options designed to align with your needs and budget \u2014 and register early to secure the best rates! We can\u2019t wait to see you, in Anaheim or online.<\/strong><\/p>\n<\/td>\n<\/tr>\n

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Why companies are adding student loan help to their benefits toolbox.<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0},"categories":[68],"tags":[4756,4876,4875,4619,4757,4877],"yst_prominent_words":[4873,4872,197,4874,1616,1187,4860,4859,4869,4868,4867,4871,4870,734,4858,4857,4866,4863,4865,4864],"_links":{"self":[{"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/posts\/8566"}],"collection":[{"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/comments?post=8566"}],"version-history":[{"count":10,"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/posts\/8566\/revisions"}],"predecessor-version":[{"id":8576,"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/posts\/8566\/revisions\/8576"}],"wp:attachment":[{"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/media?parent=8566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/categories?post=8566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/tags?post=8566"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.pihra.org\/staging\/wp-json\/wp\/v2\/yst_prominent_words?post=8566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}