|
 Consulting giant PwC announced Tuesday that it is offering $1,200
annually to employees at the two most junior levels to help pay down
student debt. PwC hires 11,000 new employees a year from college
campuses. A whopping 80 percent of the company's staff are
millennials - the demographic group that spans ages 22 to 35.
"We are taking some of that burden off of them in the initial phases
of their career," says Shannon Schuyler, principal, U.S. corporate
responsibility leader and chief purpose officer at PwC. "And it does
not come with golden handcuffs.
Gabriela Gutierrez, who started as an associate at PwC in August,
has about $30,000 in student debt.
Her employer offers some good perks, like yoga classes and a small
gym. "That is really nice," Gutierrez says. But the most valuable
one for Gutierrez - as well as for her friends - is getting student
loan relief, she says.
Almost 7 in 10 college grads owe money, with an average debt of
$28,400 for the Class of 2013, according to the Institute for
College Access and Success.
A recent study by IonTuition found that nearly 80 percent of those
with student loan debt want to work for a company that offers
repayment assistance - with a matching opportunity. More than half
of those surveyed would rather have the amount they are paying for
healthcare go towards their student loan balance. And about half of
respondents would prefer contributions to student loan payments
rather than to a 401(K) retirement plan.
Companies are contributing $50 to $200 a month to help employees pay
down student debt, according to Brendon McQueen, chief executive
officer of employee student loan management firm Flex395.
ChowNow, an online food ordering company, and a client of Flex395,
recently started offering a matching program to help some of their
employees pay back student debt. ChowNow contributes up to $1,000 a
year.
BALL AND CHAIN
Student debt is a ball and chain for young people, and is often a
bigger priority than retirement, says Christopher Webb, ChowNow’s
chief executive officer. "Like everything, you have to stand out to
attract talent," Webb says.
[to top of second column] |
ChowNow also offers a 401(k) and continues to have fun perks like
unlimited cold brew coffee and a ping pong table.
Andrew Josuweit, chief executive officer of student loan advice site
Student Loan Hero, says priorities are changing for recent college
graduates.
"If you are a young adult, and you are just out of school, it makes
a lot more sense to pay off your debt instead of focusing on your
401(k)," Josuweit says.
Of course, investing at an early age should be a priority as well,
Josuweit says. But depending on the level of debt and the interest
rate, it makes sense to run the numbers. Student Loan Hero and
Flex395 owner Tuition.io both have tools to help manage student
debt, including analyzing costs, along with the benefits of earlier
payments.
And while it is tough to compete with free tacos and regular happy
hours, the reality-driven millennial generation may perk up to
companies when they hear about programs that make them financially
fit.
(Editing by Lauren Young and Andrew Hay)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
