Americans are drowning in student loan debt. The average person (as of 2016) graduates with $37,172 in debt. That’s a tremendous burden and businesses are doing the right thing in helping their employees pay down this debt.
That’s the general consensus, but it’s not actually the best use of your benefit dollars. Here’s why.
Student loans are voluntary
Yes, rich kids can get through school without student loans, Yay. But, I’m not talking about that. You choose where you go to school. Or, at least, you choose where you apply. There are good choices and bad choices. A choice to go into massive debt for a degree which doesn’t have a high return on investment is a bad choice. If you’ve chosen massive debt for a degree that does have a high ROI, well, that’s a choice you’ve made.
By giving new employees money for paying down debt, you reward the bad choices and encourage current students to take more loans.
To keep reading, click here: Why Student Loan Repayment Is Not the Benefit You Should Offer in 2019