Dive Brief:
- Learning platform Chegg has announced an Equity for Education program, which creates an equity pool from its existing stock to help U.S. employees pay down education loans, according to a press release.
- For entry-level through managerial staff who have completed two years at the company, $5,000 will be available annually, and for directors or VPs, up to $3,000 will be available, the company said. Chegg said it already provides workers $1,000 a year to pay off student debt and more than $5,000 in non-taxed reimbursement for workers pursuing continued education.
- Dan Rosensweig, CEO and president of Chegg, said it will "take a village" to solve the daunting student debt problem. "Corporations are one of the largest beneficiaries of our education system and they should be part of the solution to realign the system," he said in a statement. The company also called on government leaders to find ways to support student loan debt repayments with innovative solutions like tax incentives, and it suggested that other employers adopt Chegg's system.
Dive Insight:
The pressure placed on new grads and others in the workforce by student loan debt may be reaching a breaking point. Workers say they want employers to help them pay down their debt in some fashion. And in today's tight talent market, many employers are meeting that request, including those like PwC and Unum.
Some employers have embraced student loan debt assistance by agreeing to contribute a certain amount to the principal loan amount, allowing workers to trade in unused PTO for student loan assistance or making 401(k) contributions that match workers' loan payments. With some relief from employers, workers may be able to achieve a level of financial stability that allows them to focus more at work and retire on time.
Financial wellness initiatives are another worker-approved way employers are helping, but when offering such benefits, personalization is key, especially given workers' diverse financial obligations.
