Iowa City Bank Offers Student Loan Repayment Benefits to Employees
Student loan debt is an issue affecting about sixty percent of college graduates who collectively owe around $1.45 trillion. For that reason, MidWestOne Financial Group started offering a student loan repayment benefit to help their employees pay off their loans more quickly.
The company began offering this benefit at the beginning of the year with a budget of $125,000. MidWestOne employees become eligible after 30 days of employment and depending on the length of their employment, they can receive up to $100 per month with a $10,000 limit. Currently, there are 100 employees enrolled and the program is managed through Tuition.io.
Prior to implementing the student loan repayment benefit, the company surveyed its employees. Funk said that over 70 percent of employees responded, demonstrating a real need for this type of benefit. Funk added, “We had some percentage (of responders) had up to $10,000 in debt, some percentage over $40,000.”
And according to Scott Thompson, CEO of Tuition.io, many younger employees are constantly looking for new, better-paying jobs. This results in a turnover rate that is much higher than what has been seen with previous generations.
But according to Tuition.io, 86 percent of employees said they would stay with an employer for at least five years if that employer helped them pay down their student loans. The repayment benefit is often viewed as an effective worker retention model.
The benefit is starting to catch on as several large companies have jumped on board. Tuition.io currently works with a number of well-known companies, including Staples, Fidelity, and Freddie Mac.
MidWestOne Bank is headquartered in Iowa City, Iowa and has 44 banking offices located throughout Iowa, Wisconsin, Minnesota, Colorado, and Florida.
Based in California, Tuition.io offers a secure platform for employers of all sizes to provide student loan repayment options to their employees. Information like interest rates and outstanding loan balances rates are available through its platform. And in the case of multiple student loans, Tuition.io will recommend which loan to make payments on.