Employers can offer benefits to help workers with student loans

Despite hopes of widespread student debt forgiveness being dashed, employers can still help workers struggling with student loans. COVID repayment pauses ended in 2023, and the Supreme Court struck down Biden’s $20,000 debt cancellation plan. Now, collections are in play for defaulted borrowers. Around 20.5% of borrowers are past due on payments, and 5.3 million face wage garnishment. Employers can aid by offering retirement benefits, educational assistance programs, and paid time off exchanges. Few employers currently offer student loan retirement matches, but with the student loan crisis worsening, more may adopt this benefit. Financial counseling and student loan education are essential to help borrowers manage their debt effectively. Educational assistance programs that can be used to pay off student loans were expanded in 2020. Critics argue that PTO exchanges could lead to work-life imbalance and burnout. The program is set to expire at the end of 2025, but experts are confident it will become permanent through legislation.

Read more at Yahoo Finance: The Trump administration has begun garnishing wages of student loan borrowers in default. These are the benefits businesses can offer employees to help with their debt