NEW YORK (AP) — Employers are testing out a new way to lure and keep new workers: Help them pay back their student loans.
More and more companies are helping workers refinance their debts at better rates, giving employees extra cash for loan payments, or even paying their workers’ lenders directly. It’s a major benefit for millennials – people 35 and under – who are struggling to pay thousands of dollars in student debts as they enter the workforce.
But it’s not as simple as it sounds: Many college graduates emerge owing multiple lenders, and the tax implications can be complicated. Employers also want to make sure the money goes to the right place. This has created a niche for a handful of startups helping employers deliver the benefit.