More companies are courting workers by paying off their student loans | Personal finance

And Chegg, the student-focused learning platform that was an early adopter of student loan benefits, has started increasing payments based on seniority. All full-time employees with student debt have received up to $1,000 in student loan payments each year since the program began. In 2019, the company added a new entry-level employee program through vice president-level workers who have been with Chegg for at least two years. These employees are entitled to a maximum of $5,000 per year, in addition to cash payments of $1,000. Chegg manages this benefit differently than other companies, selling company stock grants, a form of company stock, on behalf of executives and using a portion of the profits to support its loan relief program. students.

Other companies have launched completely new programs. McLaren Health Care, a hospital network operating in Michigan, launched a new student loan assistance program at its Flint facility this month. Payouts start at $200 per participant, per month. McLaren then increases the amount to $300 in the second year of participation and $450 in the third year.

The program is for employees in high-demand positions, including registered nurses, respiratory therapists, pharmacists and medical technologists. McLaren Flint will pay a maximum of $15,000 for eligible employee student loans.

Most repayment assistance programs are designed so that employees must continue to make their minimum monthly payments, and then the employer contribution acts as an additional payment. This helps employees pay off their debt faster while saving money on interest.

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