Employees are interested in repayment benefits as they tackle monthly payments, a survey from IonTuition, a provider of student loan debt help, found.
study—which surveyed 2,712 adults currently employed and experienced in
student loan borrowing and repayment—found that 87.7% of respondents
believe employer-sponsored student loan contribution programs are
significant. Furthermore, nearly two-thirds (65.4%) reported difficulty
in paying student loan debt, and nearly one-third (32.4%) lack the
confidence to complete payments.
These challenges don’t come as a
surprise however, especially since more than half (51.3%) of respondents
claimed not receiving any financial counseling before accepting the
terms of their loans (a rule that is required when taking out a federal
student loan). Inadequate counseling could be the reason why 61.9%
believe their payments are or were too high, and why nearly half (48%)
do not know their interest rate. Additionally, 35.6% of respondents
believe they are unaware of their student loan repayment options, and
while only 46.8% have a credit score of around 680, 14% lack any
knowledge of their score and one-fifth (19.2%) of those are uncertain if
their score is high or low.
To combat these issues and help with
student loan management, 57.8% of those surveyed said it would be
helpful if employers provided information and online tools, including a
hotline for repayment education and one-on-one student loan counseling.
Nearly half (48.4%) of respondents believe a hotline would be
beneficial, while close to two-thirds (64.1%) would value personalized
"As businesses look to help employees with their student loan debt, they should consider the variety of assistance programs available,"
said Balaji Rajan, CEO of IonTuition. "There are options for employers
who find refinance programs too restrictive or contribution payments
prohibitive. With IonTuition, we've built a platform that puts repayment
optimization in any employee's grasp, with or without employer-provided
More findings of the survey can be found here.