Essential Tips on How to Implement an Employer Student Loan Repayment Assistance Program (Part 2 of 2)
The process of implementing an employer student loan repayment assistance program can be fraught with questions. What will the scope of the program be? How many employees will enroll? Fortunately, the process itself does not have to be complicated, and for companies that currently offer a pool of taxable benefits, the decision to implement is kind of a no-brainer.
Incorporate the Program as an Option Within an Existing Pool of Taxable Benefits
The employer student loan repayment assistance program can seem daunting, especially when businesses are paying close attention to the dollar amount paid out in benefits. And why shouldn’t they? The last thing fiscally responsible business owners want to do is increase spending where they don’t have to.
Fortunately, it doesn’t have to cost one additional cent to implement the program. With a pool of taxable benefits already in effect, the employer can simply incorporate the repayment assistance program as an option for employees. Not all employees will receive the benefit. If an employee meets the eligibility requirements set forth, the benefit can substitute for a different benefit already established in your overall package.
Ease of implementation is the ultimate goal. Adding the student loan repayment assistance program to a pre-existing menu of taxable benefits simply creates options from which your employees can pick and choose. Not everyone will receive the benefit because it is not for everyone. Therein lies the key to the program: since there are no defined rules as to who receives the benefit, and not everyone in your company will receive it, you can set the eligibility criteria based on the human capital management goals of your company. With the help of a third-party company to oversee implementation and operation, you can fashion a benefits program that will specifically address your recruitment, retention, and engagement needs.
Contract a Third-Party Company to Help
Third-party companies like LoanGifting essentially serve to streamline the process and handle all of the behind-the-scenes work. LoanGifting’s primary goal in this regard is to coordinate and facilitate the operation of the benefits program so that the process of implementation can be painless and prompt.
Essentially, LoanGifting utilizes a Loan Benefits Platform that creates a portal for both the employer and the employee to have access to the program as it is run through the payroll system. Contribution payments are then made to the banks through the platform. No sweat. No hassle.
Take Time to Structure Your Program According to Your Needs
The program itself is malleable for the sake of accomplishing various human capital goals. Because the student loan repayment assistance program is not automatically included within each employee’s benefits package, you can custom tailor the eligibility requirements based on your HR needs.
For example, if you want to boost your recruitment strategy and bring in more applications to fill your requisitions, then you can open eligibility requirements to all new employees. If you want to decrease employee turnover, you can restrict eligibility to all employees who have been with your company for at least two years. The sky is the limit in terms of structuring the program.
Also, the sky is the limit in terms of what the program can accomplish with your human capital goals. We have explored the value of the loan repayment assistance program in previous blog posts. The value becomes even more apparent as companies around the nation catch wind of what a powerful HR and employment marketing tool this program can actually be.
The Means to an End
The fact that the program can be quite easy to implement if an employer goes through a third-party company and already offers taxable benefits should only serve to further the point: the employer student loan repayment assistance program is an excellent means of accomplishing human capital management goals, including recruitment, retention, and engagement.
I’m a 32-year-old writer based out of San Antonio, Texas, with my own mountain of student loan debt to conquer. When I’m not working, I’m either out for a run on the trails or chilling at home with my rescue dog, Vincent (for Van Gogh, my favorite painter). I like to eat (a lot), read (I’m a real horror junkie, with Stephen King topping my list of favorite writers), watch movies (Titanic – yes, Titanic – is the be-all and end-all for me), drink wine (red only, please), travel (Italy has my heart and always will), collect crystals, meditate, and read tarot cards. Perpetually single, but a softie deep down, I try to stay true to my hippie heart and find the good in every person and situation. I remain curious and open to learning new things (except for math which, I am convinced, will always be my downfall). If I can answer any questions about my work here on student loan debt and repayment assistance programs, feel free to shoot me an email. I don’t bite (usually). [email protected]
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