PLANSPONSOR - April - May 2022 - 4

INDUSTRY ANALYSIS
Hitting the Books
S
tudent loan debt in the U.S. totals
$1.747 trillion, according to the federal
government's Education Data
Initiative. For many American adults,
regardless of generation, this debt amplifies
their stress-and hinders their saving
for future needs, such as retirement.
" Employers can alleviate that
concern by redirecting existing benefits
toward student debt, " says Kathleen
Barber, vice president, corporate benefits
and compensation, Goldman Sachs Ayco
Personal Financial Management.
Many companies that offer student
loan benefit programs have only recently
begun to do so. So it is not surprising that
only 3% of plan sponsor respondents to
the 2021 PLANSPONSOR Defined Contribution
Survey provide a form of student
loan support program, and just 1% match
student loan payments. Still, the House's
recently passed Securing a Strong Retirement
Act, aka SECURE 2.0, includes
opportunities for companies to match
student loan payments, which may prompt
more employers to explore the option.
In comparison, looking at other benefits
that help pay for higher/continuing
education, 39% of responding employers
offer a tuition reimbursement program;
these appear to affect a relatively small
proportion of an employer's workforce.
For instance, according to a survey
by WTW, student loan benefits are used
by a significantly higher percentage of
employees than is tuition reimbursement.
But sources point to an increase in
loan repayment programs. As the federal
student-loan-payment
freeze nears
an
end, " We are seeing greater numbers of
employers reaching out to implement
programs, " says Stacey MacPhetres, a
senior director of education finance at
EdAssist Solutions.
For employers, says WTW Senior
Director Lydia Jilek, [doing this] adds " to
the stickiness of the employee. "
-Judy Faust Hartnett
4 PLANSPONSOR.COM April - May 2022
44%
How Do You Help Employees Pay for Higher Education?
Offer a 529 college savings plan
(via payroll deductions)
Contribute to a sponsored
529 plan
Offer a tuition reimbursement
program
Offer a student loan payback
program
Have a student loan 401(k) match
(based on student loan payments)
Do not offer any assistance with
higher education payments
Source: 2021 PLANSPONSOR DC Survey
Eligible Employees Enrolled in an Employer Student
Loan vs. Tuition Reimbursement Program
n Many or most employees have used this benefit
n Some employees have used this benefit
n Few employees have used this benefit
17%
Student loan
program
39%
58%
5%
Tuition
reimbursement
program
37%
6%
3%
39%
3%
1%
0%
Source: WTW, 2021 Emerging Trends in Health Care Survey
http://www.PLANSPONSOR.COM

PLANSPONSOR - April - May 2022

Table of Contents for the Digital Edition of PLANSPONSOR - April - May 2022

INSIGHTS
INDUSTRY ANALYSIS
RULES & REGULATIONS
UPFRONT
The DE&I Lens
By Design
Things People Do
Leakproof Your Plan
The ESG Decision
When Retirees Stay in the Plan
PLANSPONSOR - April - May 2022 - Cover1
PLANSPONSOR - April - May 2022 - CT1
PLANSPONSOR - April - May 2022 - CT2
PLANSPONSOR - April - May 2022 - Cover2
PLANSPONSOR - April - May 2022 - 1
PLANSPONSOR - April - May 2022 - INSIGHTS
PLANSPONSOR - April - May 2022 - 3
PLANSPONSOR - April - May 2022 - INDUSTRY ANALYSIS
PLANSPONSOR - April - May 2022 - 5
PLANSPONSOR - April - May 2022 - RULES & REGULATIONS
PLANSPONSOR - April - May 2022 - 7
PLANSPONSOR - April - May 2022 - 8
PLANSPONSOR - April - May 2022 - 9
PLANSPONSOR - April - May 2022 - UPFRONT
PLANSPONSOR - April - May 2022 - 11
PLANSPONSOR - April - May 2022 - 12
PLANSPONSOR - April - May 2022 - 13
PLANSPONSOR - April - May 2022 - 14
PLANSPONSOR - April - May 2022 - 15
PLANSPONSOR - April - May 2022 - 16
PLANSPONSOR - April - May 2022 - 17
PLANSPONSOR - April - May 2022 - The DE&I Lens
PLANSPONSOR - April - May 2022 - 19
PLANSPONSOR - April - May 2022 - 20
PLANSPONSOR - April - May 2022 - 21
PLANSPONSOR - April - May 2022 - By Design
PLANSPONSOR - April - May 2022 - 23
PLANSPONSOR - April - May 2022 - 24
PLANSPONSOR - April - May 2022 - 25
PLANSPONSOR - April - May 2022 - 26
PLANSPONSOR - April - May 2022 - 27
PLANSPONSOR - April - May 2022 - Things People Do
PLANSPONSOR - April - May 2022 - 29
PLANSPONSOR - April - May 2022 - 30
PLANSPONSOR - April - May 2022 - 31
PLANSPONSOR - April - May 2022 - Leakproof Your Plan
PLANSPONSOR - April - May 2022 - 33
PLANSPONSOR - April - May 2022 - The ESG Decision
PLANSPONSOR - April - May 2022 - 35
PLANSPONSOR - April - May 2022 - When Retirees Stay in the Plan
PLANSPONSOR - April - May 2022 - 37
PLANSPONSOR - April - May 2022 - 38
PLANSPONSOR - April - May 2022 - 39
PLANSPONSOR - April - May 2022 - 40
PLANSPONSOR - April - May 2022 - Cover3
PLANSPONSOR - April - May 2022 - Cover4
https://www.plansponsordigital.com/plansponsor/april_may_2022
https://www.plansponsordigital.com/plansponsor/february_march_2022
https://www.plansponsordigital.com/plansponsor/december_2021_january_2022
https://www.plansponsordigital.com/plansponsor/october_november_2021
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
https://www.plansponsordigital.com/plansponsor/december-january_2021
https://www.plansponsordigital.com/plansponsor/october-november_2020
https://www.plansponsordigital.com/plansponsor/august-september_2020
https://www.plansponsordigital.com/plansponsor/june-july_2020
https://www.plansponsordigital.com/plansponsor/april-may_2020
https://www.plansponsordigital.com/plansponsor/february-march_2020
https://www.plansponsordigital.com/plansponsor/december-january_2020
https://www.plansponsordigital.com/plansponsor/october-november_2019
https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
https://www.plansponsordigital.com/plansponsor/october-november_2018
https://www.plansponsordigital.com/plansponsor/august-september_2018
https://www.plansponsordigital.com/plansponsor/june-july_2018
https://www.plansponsordigital.com/plansponsor/april-may_2018
https://www.plansponsordigital.com/plansponsor/february-march_2018
https://www.plansponsordigital.com/plansponsor/december_2017-january_2018
https://www.plansponsordigital.com/plansponsor/november_december_2017
https://www.plansponsordigital.com/plansponsor/october_2017
https://www.plansponsordigital.com/plansponsor/september_2017
https://www.nxtbookmedia.com