ROLLING MEADOWS, IL – July 18, 2017 – IonTuition, the leading provider of student loan management solutions for employers and universities, today published updated results to a survey of U.S. employees with college loan debt about their views on employer-provided student loan repayment assistance. There are nearly 44 million Americans carrying $1.4 trillion in student loan debt, and the numbers are only projected to rise. As the stress of looming student debt grows, more employees are looking to work for companies that offer to pay down their student loans.
Since IonTuition’s 2015 study, the number of student loan borrowers has increased by nearly 4 million and they are carrying higher balances – those carrying over $30,000 in student debt rose to 30 percent, a 50 percent increase from 2015. In the latest study, over 80 percent of respondents with college debt said they would like to work for a company that offers student loan repayment plans. The results indicate that it would be prudent for employers to offer student loan repayment benefits in order to recruit and retain high-caliber talent.
Student Loan Repayment Over 401(k) and Healthcare Benefits: Over half of those with student debt would prefer monthly contributions towards their loan debt rather than healthcare benefits, and nearly 48 percent would choose student loan assistance over a 401(k).
More Respondents Have 401(k), Many Prefer Loan Assistance: Of the almost 50 percent of respondents who reported having a 401(k), nearly a quarter said they would prefer student loan assistance over their 401(k) plan.
Borrowers Remain Uncertain of Interest Impact: Over 60 percent of respondents indicated uncertainty around how much they will have paid in interest over the life of their loan.
Respondents Foresee a Long Road to Repayment: The standard repayment plan for federal student loans puts borrowers on a 10-year track to pay off their debt. However, over 30 percent of respondents estimate it will take between 11 to 30 years to pay off their student.
“Unless the tax laws change, not all employers can contribute to paying down student debt,” said Balaji “Raj” Rajan, CEO of IonTuition, “But this study proves that employers have a key role to play across multiple generations of employees - from parents planning college for newborns to older employees paying for their own or their children's loans. We built IonTuition for this purpose, as a holistic solution."
IonTuition is an industry leader in student loan management solutions. We’re involved in the entire lifecycle of student loan repayment, from providing prospective college students predicted returns from potential universities, to helping employers provide repayment assistance benefits. For years, we’ve delivered interactive, user-friendly loan management tools to users of all kinds. Our mission has always been to help student loan borrowers at every stage, at any age.