PLANADVISER - July/August 2019 - 20

trendspotting
Student Loan Repayment Programs
Employers are starting to note the option's role in promoting wellness
increase in the number of employers
considering a student loan repayment
program, when they think about the
overall wellness of their worker population, "
says Lydia Jilek, senior director of
voluntary benefits at the consultancy.
And while student loan debt, estimated
to now top $1.5 trillion in the
U.S., is " pervasive within the U.S. population
among all generations, " Jilek says,
a company should first assess whether
offering such a program would be right
for its employee base before implementing
one.
That said, Jilek reveals that Millennials
are the most vocal about asking
for these programs, but workers in
their 30s and 40s carry the highest
student loan debt balances. Further,
many people in their 60s have taken
out student loans on behalf of their
children and/or grandchildren, and
have the highest delinquency rate for
repayment, she says.
According to Jilek, because some
employers are hesitant to take on
the added expense of the repayment
programs, some opt to offer only one,
to a pilot group of their worker population
such as graduates of certain
years. Others start with a " debt
consolidation dashboard that they
then use as a proxy, to see the take-up
rate, " she says. " That might indicate,
for example, that the employer would
be faced with 20% of its worker population
taking up a repayment program. "
Jilek reports hearing that the IRS
WHILE only 10% of employers offer a
student loan repayment program, 5%
are thinking of adding one this year,
and another 20% say they might make
the leap next year or in 2021, Willis
Towers Watson learned in a recent
survey. Eight percent currently offer
student loan consolidation, 5% may
add that this year, and 21%, sometime
in the next two years. Far less
common are employer contributions
toward student loan debt, offered by
a mere 3% of employers. Four percent
may make these contributions this
year, and 24% may start by 2021.
While
tuition
reimbursement
programs, which are federally regulated,
are far more common-offered
by 80% of employers-Willis Towers
Watson is starting to see " a significant
may expand the Abbott ruling, which
permitted that company to give 401(k)
matches for workers paying down
their student loan debt.
She says the agency may make
a decision by the end of the year.
" My perception is that we are on a
faster track because of the growing
interest in offering these programs to
employees across the board, " she says.
However, it is " unclear whether the
IRS will grant additional flexibility. "
-Lee Barney
20 | planadviser.com July-August 2019
Art by Núria Tamarit

http://www.planadviserdigital.com/planadviser/july_august_2019/TrackLink.action?pageName=20&exitLink=http%3A%2F%2Fplanadviser.com

PLANADVISER - July/August 2019

Table of Contents for the Digital Edition of PLANADVISER - July/August 2019

An Array of Models
2019 Recordkeeper Services Survey
Advice for All
Pension Risk Transfer on the Rise
Investment Oversight Partners
Through the 'Window'
Now Who is a Fiduciary?
Venue Clauses
The SEC's Standard on IRA Rollovers
PLANADVISER - July/August 2019 - C1
PLANADVISER - July/August 2019 - FC1
PLANADVISER - July/August 2019 - FC2
PLANADVISER - July/August 2019 - C2
PLANADVISER - July/August 2019 - 1
PLANADVISER - July/August 2019 - 2
PLANADVISER - July/August 2019 - 3
PLANADVISER - July/August 2019 - 4
PLANADVISER - July/August 2019 - 5
PLANADVISER - July/August 2019 - 6
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PLANADVISER - July/August 2019 - 11
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PLANADVISER - July/August 2019 - 20
PLANADVISER - July/August 2019 - 21
PLANADVISER - July/August 2019 - 22
PLANADVISER - July/August 2019 - 23
PLANADVISER - July/August 2019 - An Array of Models
PLANADVISER - July/August 2019 - 25
PLANADVISER - July/August 2019 - 26
PLANADVISER - July/August 2019 - 27
PLANADVISER - July/August 2019 - 2019 Recordkeeper Services Survey
PLANADVISER - July/August 2019 - 29
PLANADVISER - July/August 2019 - 30
PLANADVISER - July/August 2019 - 31
PLANADVISER - July/August 2019 - 32
PLANADVISER - July/August 2019 - 33
PLANADVISER - July/August 2019 - 34
PLANADVISER - July/August 2019 - 35
PLANADVISER - July/August 2019 - 36
PLANADVISER - July/August 2019 - 37
PLANADVISER - July/August 2019 - 38
PLANADVISER - July/August 2019 - 39
PLANADVISER - July/August 2019 - Advice for All
PLANADVISER - July/August 2019 - 41
PLANADVISER - July/August 2019 - 42
PLANADVISER - July/August 2019 - 43
PLANADVISER - July/August 2019 - Pension Risk Transfer on the Rise
PLANADVISER - July/August 2019 - 45
PLANADVISER - July/August 2019 - Investment Oversight Partners
PLANADVISER - July/August 2019 - 47
PLANADVISER - July/August 2019 - Through the 'Window'
PLANADVISER - July/August 2019 - 49
PLANADVISER - July/August 2019 - Now Who is a Fiduciary?
PLANADVISER - July/August 2019 - Venue Clauses
PLANADVISER - July/August 2019 - The SEC's Standard on IRA Rollovers
PLANADVISER - July/August 2019 - C3
PLANADVISER - July/August 2019 - C4
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