Adidas, a sportswear company, stated earlier this month that it would assist its American employees who owe back school debts especially for loan assistance.
It’s evident that student debt is a major concern because the company stated that the majority of their local employees said it generates a lot of stress.
Millions of Americans Look for Student Loan Assistance
This kind of program is not only uncommon but also not new: According to a report from the Society for Human Resource Management released this week, only 8% of businesses in the nation offer it.
This might become a more typical benefit if student loan payments start up again in October.
About 43 million Americans have federal student loan debt, and they are interested in learning which employers will assist them in paying it off.
According to Betsy Mayotte, president of The Institute of Student Loan Advisors, she receives inquiries from borrowers about a list on a greater and more regular basis.
There is no official list of employers who do so, but those who do see it as a way to compete for talent in a competitive employment market.
According to Michael Gettlin, vice president of global total incentives at Peloton, the fitness company offers employees $100 a month to help with student loan debt, similar to Adidas.
He said that Peloton has benefited from it since 2017.
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Peloton Offers College Assistance For Debt Reduction
We value everything that might have an impact on a team member. And for a substantial chunk of our employees, this is a really important component of it, Gettlin added.
Peloton gives employees with dependents who might someday attend college the same amount of money toward school savings as opposed to helping them reduce debt.
According to Craig Copeland of the Employee Benefit Research Institute, several businesses have reported that providing benefits for student debt, as opposed to the monetary equivalent, improved employee retention.
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