Employers are now looking at a different angle in order to retain employees and increase company perks. Parents can soon breathe a sigh of relief because their organization may be soon paying off your kids' college or university loans.
A new company has risen up to help employers manager their organization's student loan repayment programs. Tuition.io is just the company for that job. Launched this Tuesday, the firm can help companies pay off their employees' Parent PLUS loans.
It is unknown yet as to how many companies are willing to open up that kind of perk. However, Tution.io is already doing the preliminary discussions with various employers. This kind of company perk can be an attractive benefit for parents who are still deep in educational loans. According to Market Watch, companies may want to include this form of benefit as a retention tool, something the Wall Street Journal also reported. Tenured and experienced workers can stay with the company longer.
Brendon McQueen, the founder and chief executive of Tuition.io, says "As parents, many of whom are baby boomers, are thinking about retirement they have to carry this extra burden."
According to McQueen, it makes sense for companies to invest in their most skilled workers in their organization. "They know the lay of the land and so it would make sense to include them in these programs," says McQueen.
The typical undergraduate can borrow a maximum of $27,000 in Student Aid for federal loans for four years of school. While parents can borrow up to the cost of their child's schooling minus other grants and aid each year from the federal government.
Mark Kantrowitz, a financial aid expert, says that parents who are sending their kid to a college or university can be relieved of this financial pressure if someone helps them pay for it.