As we collectively move toward the outcome of the U.S. Supreme Court’s decision on the validity of the Biden Administration’s one-time debt relief plan, one certainty remains: many student loan borrowers will still need support.
According to a recent Society for Human Resources Management (SHRM) article, the Supreme Court case “… puts a spotlight on the massive toll of student loan debt afflicting Americans…” highlighting a need for additional support from employers. Similarly, the U.S. Department of Education is working with schools to provide proactive support.
As we’ve consistently reported, many measurable signs point to the challenges borrowers face because of their student debt (e.g., delays in achieving financial milestones and mental health challenges). Support can take a variety of forms, like financial wellness education, loan counseling to help understand the available repayment and forgiveness options and a student loan paydown benefit.
Student debt challenges are on the horizon for many.
In our recent blog post, we talk about the Hurdles to Student Loan Repayment that many borrowers will face.
- After three years of federal student loan payments being on hold, borrowers will have difficulty making room for a new monthly student loan payment in a budget already stretched by inflation.
- Many will be starting repayment newly or were transferred to a new loan servicer. It’s quite possible they don’t know who their servicer is.
- Federal student loan programs are confusing and constantly changing, and it’s difficult to know which repayment plan is best for each individual’s situation.
Make a difference in borrowers’ lives.
Employers and higher education organizations play unique roles in helping people manage their debt.
- Employers can support employees by providing a student loan paydown benefit, 1:1 personalized support from trusted experts and financial education website.
- Schools can support students by providing financial wellness resources, an annual debt letter and repayment support for those who need guidance.