ROHNERT PARK, Calif., June 21, 2017 /PRNewswire/ -- The American Student Assistance (ASA) recently published a study titled "Young Workers and Student Debt" that shows a disconnect between young workers and HR representatives regarding student loan debt. The resulting workplace offers traditional benefits but lacks the program that matters most to young workers. Alltech Financial helps companies fill that gap and offers their employees federal student loan repayment solutions that satisfy their workers' needs.
It's unreasonable to expect HR to read minds, but companies would benefit from more communication between their employees and HR regarding student loan debt. According to the ASA study, 26 percent of workers age 22 to 33 worry about student loan debt all the time. Comparatively, only 14 percent of HR reps think young workers worry about student loan debt all the time.
Companies often provide retirement savings plans, but why don't they offer other financial benefits? Knowing what their employees are struggling with is necessary before offering a benefit that will help. But that communication is still lacking, even for companies that offer student loan assistance benefits.
Of the 51 percent of young workers who say student loan benefits are important to them, only 16 percent say a student loan assistance benefit is available to them, and 9 percent are taking advantage of one. However, employees are often wrong about whether their company offers those benefits: 24 percent of employees say their company definitely offers student loan assistance, but only 14 percent of HR reps agree.
"Student loan benefits are still relatively new, so it's not a surprise that not all employees are aware they are available when they are," said Chuck Gangnath, Vice President at Alltech Financial. "Workers pay attention to traditional benefits like health insurance and retirement plans, but they should pay more attention to student loan assistance."
Benefits not only help the employee in specific ways but they also help the company. Employees who feel appreciated, who feel like their employer cares about their needs, are more likely to stay with a company and produce high-quality work. However, the type of benefits a company offers is becoming important in this economy, which is overladen with student loan debt.
According to ASA's study, 59 percent of young workers say paying their student loans is a higher priority than putting money in a retirement plan. That negates one of the most common benefits offered by employers. Considering the weight student loans have on young workers (61 percent of young workers have considered getting a second job to pay off student loans), it follows that employers should offer student loan assistance as a prominent benefit. But only 22 percent of companies do.
Companies that have implemented a student loan assistance benefit program have experienced higher employee recruitment, engagement and retention. In fact, 86 percent of young workers would commit to 5 years with an employer if they helped with student loan debt.
"It's clear that young workers want help with their student loans," said Gangnath. "Who better to step in than their employer? Alltech Financial helps companies do that in a way that is beneficial to both parties. Our innovative approach allows workers and their families to potentially reduce their monthly student loan burden with the goal of total loan forgiveness. With that relief comes lower stress, which they bring to work in the form of dedication and determination. It's a win-win."
About Alltech Financial
Alltech Financial offers employers and corporate partners a solution to help employees and their families reduce their monthly student loan obligations and prepare them for total loan forgiveness.
Each representative on the phone is certified through the International Association of Professional Debt Arbitrators (IAPDA) and has received the Certified Student Loan Professional certification through Association for Student Loan Relief (AFSLR).
To learn more about Alltech Financial, please contact:
5789 State Farm Drive Ste. 265
Rohnert Park, CA 94928
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SOURCE Alltech Financial