- An overwhelming majority (89%) of students think more companies’ benefit packages should include helping employees pay off their student loans.
- Nearly two-thirds (64%) of students say they would rather have $5,000 toward 401(k) contributions annually than $5,000 toward student loan contributions.
- Almost 6 in 10 (57%) students who expect to graduate with debt say that a company offering student loan repayment would be a major factor into their decision about applying, while 40% say it would be a minor factor.
Most college students today graduate in debt, and many choose jobs based on how quickly they can pay off what they owe. Companies that help their employees tackle student loan debt may have a leg up when it comes to attracting and retaining top talent.
A new survey of 2,500 undergraduates finds that an overwhelming majority (89%) of students think more companies’ benefit packages should include helping employees pay off their student loans. But women tend to take on more student debt than men, and female students are more likely than their male classmates to say companies should make student loan contributions (94% vs. 83%).
Female Students are More Likely to Want Student Loan Perks
Do you think more companies’ benefit packages should include helping employees pay off their student loans?
Students still want to save for retirement while tackling their debt, which has led some employers to look at matching student loan payments with 401(k) contributions. Nearly two-thirds (64%) of students overall say they would rather have $5,000 toward 401(k) contributions annually than $5,000 toward student loan contributions as a full-time employee. Among students who expect to have student debt when they graduate, more than half (52%) would prefer 401(k) contributions to student loan contributions.
However, students with debt say student loan perks will help them decide which companies they apply to after school. Almost 6 in 10 (57%) students who expect to graduate with debt say that a company offering student loan repayment would be a major factor into their decision about applying, while 40% say it would be a minor factor. Only 4% say it would not be a factor at all.
Female students are also far more likely than male students to say it would be a major factor for them (65% vs. 44%). At the same time, students of color are more likely than white students to say it would be a major factor. Roughly two-thirds (66%) of black students say it would be a major consideration, compared to 63% of Hispanic students, 60% of Asian students, and 51% of white students.
Student Loan Help Could Influence Female Students to Apply for a Job
If you saw that a company offered student loan repayment while searching for jobs after graduation, how much, if at all, would that factor into your decision about applying?
It wouldn’t take a lot for students’ heads to turn toward a company that helped its employees pay off their loans. If a company offered to match employees’ student loan payments up to a certain amount each year, nearly three-quarters (74%) of students with debt say just $2,000 a year or less would grab their attention. Another 22% say it would take more than $2,000 a year to get their attention.
A majority (71%) of students with loans worry about being able to make their student loan payments after graduation. Female students in particular are more likely than male students to worry about making payments (80% vs. 56%). Debt will factor into the types of jobs students apply for after graduation, and companies that address those concerns head on will be one step ahead.
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Methodology: This survey was designed and conducted by College Pulse. Interviews were conducted among a sample of 2,500 full-time and part-time students attending four-year colleges or universities in the U.S. who are part of College Pulse’s American College Student Panel.
