The American Bankers Association today announced that it is offering a student debt repayment benefit for employees. Starting in December, the association will pay up to $1,200 per year toward employees’ student loan balances, with a lifetime cap of $10,000. According to an annual survey from a national human resources group, only 4 percent of employers nationwide offer this kind of benefit.
The new benefit is the first step of a broader ABA strategy to mitigate the burden of student loan debt in America. The association’s Endorsed Solutions group is currently reviewing vendor options to help ABA member banks who are interested in offering a similar benefit to their own employees.
“We’re encouraging our members to consider offering a benefit like this to help attract and retain millennials in their individual markets,” said ABA President and CEO Rob Nichols. “Since so few employers currently offer such benefits, we see this as an opportunity for banks to uniquely position themselves to attract and retain young talent.”