Tuition.io, the startup that helps employers pay down their workers’ student loan debt, has added another high-profile client to its roster. USA Today recently announced that Tuition.io has added Live Nation Entertainment, and it’s close to 9,000 employees, to its platform.
Live Nation Entertainment is joining a growing list of employers who are using the offer of paying down a portion of student debt as a recruitment and retainment tool. In March of 2016, Tutition.io signed up Fidelity Investments, giving legitimacy to this new benefit. Fidelity pays $2,000 a year toward their employees’ student debt and caps the contribution at $10,000. Other employers using Tuition.io’s service include Fidelity Investments, office-supplies retailer Staples and computer and printer company Hewlett-Packard.
Under the program, Live Nation will match employee contributions up to a $100 a month or $1,200 a year. The benefit is capped at $6,000 and is open to employees who have been with the company for six months.
Tutition.io, which came onto the student loan scene in January of 2013, started out as platform to help students organize and optimize their student debt. In 2015, however, the company pivoted into helping employers offer student loan reductions as a benefit.
With its platform, companies can pay a portion of their employees’ student loan debt each month similar to the matching component of 401(k)s.
While helping employees pay down their student loan debt is a new benefit, it is gaining traction as employers look for ways to recruit and more importantly keep talent within their firms. With unemployment hovering at lows not seen in years, companies are in a talent war for top workers.
In May of 2016 the Lumina Foundation, a non-profit whose goal is to increase the number of Americans with degrees and certificates, released a study on the impact of this new benefit at health services company Cigna. The non-profit commissioned Accenture, a global professional services company, to do the study.
Accenture, which analyzed Cigna’s student loan benefit program from 2012 through 2014, found that Cigna earned $1.29 for every dollar invested – a 129 percent return. Furthermore, employees who took advantage of the benefit were 10 percent more likely to get promoted and 7.5 percent more likely to be transferred to different roles.
Author: Donna Fuscaldo
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