WASHINGTON, Dec. 8 (UPI) — A Boston-based investment firm is among a growing list of companies looking to entice and retain young professionals with cash to pay off student debt.
Natixis Global Asset Management announced full-time employees with at least five years tenure will receive a $5,000 payment toward their federal Stafford or Perkins loans, with $1,000 payments each subsequent year up to a total of $10,000. Natixis joins a small but growing number of other businesses that have made similar commitments in the past months, including online bookstore Chegg.com, and accounting and consulting giant Pricewaterhouse Coopers.
“We decided it was time we put our money where our mouth is, and make sure our own people are on sound financial footing,” said Tracey Flaherty, the senior vice president of retirement strategies at Natixis.
Student loan debt has become a talking point across the board, from the presidential campaign trail to company boardrooms nationwide.
About 43 million Americans owe an estimated $1.2 trillion in student loan debt. About $103 billion of that is in default. Borrowers have called on lawmakers to reform the federal student loan system, including allowing student debts to be discharged in bankruptcy. So far, politicians have outlined a variety of plans to make adjustments to the system, but little has been done.
The Society for Human Resource Management found 3 percent of more than 450 companies surveyed in 2015 offer student loan repayment as part of their benefits packages. Analysts expect that to change in the coming years.
“Those numbers are understated because there is a lot of pent-up demand for this stuff,” said Bruce Elliott, SHRM’s manager of compensation and benefits. “I do think it’s the beginning of a trend.”
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