On November 29, Bass, Berry & Sims attorneys Susie Bilbro and Doug Dahl participated in a webinar sponsored by Bright Horizons about employer-sponsored student loan repayment benefits. In order to help employees faced with mounting student debt, employers are offering creative solutions that help attract and retain workers. Earlier this year, healthcare company Abbott announced a program in which the company will contribute 5% of employees’ pay to their 401(k) as long as the employee pays at least 2% of his/her salary toward student loan debt.
This creative approach has benefits all-around. However, implementing these types of programs will require work on the part of employers. Susie cautioned that “such plans will need, among other things, processes for enrollment and opting out.” Doug added that “There are going to be administrative hurdles. So finding a knowledgeable third party administrator is going to be helpful for anyone trying to implement these.”
Bright Horizons provided a full recap of the webinar on their blog, “Student Loan Repayment Programs and 401(K)s: What You Need to Know.”