Francis says BP-3 employees who have worked with Student Loan Genius to get advice about how to handle debt and pay it down are happy with the service. He notes that participation in the 401(k) plan has grown since offering the student loan repayment benefit, but it is hard to quantify how much effect it has had since hiring also increased and the plan uses automatic enrollment. However, one thing Francis has noted is that employees feel more comfortable about 401(k) contributions. “No one is pulling out once enrolled,’ he says.
In addition, since using Student Loan Genius, employees are paying off student loans faster, and they are putting more into the 401(k) to at least get the company match.
Hackley shared data that show $100 in matching can help save up to $74,708 during employees’ student loan repayment, and $100 in matching can help cut repayment time by up to 10 years and 10 months in the most extreme cases.
Francis says the key thing is the student loan repayment benefit has been a culture reinforcement for BP-3. “It reflects to employees how valuable they are to us; we want to help them pay down debts that may be holding them back from investing in future,” he says. “My suspicion is, this will become a more used benefit in the future because the student loan debt problem will be a bigger and bigger concern with each generation.”