Hot Topic: Resumption of Student Loan Payments 

Hot Topic: Resumption of Student Loan Payments 

After a three-year pause, student loan payments have resumed. For many borrowers this situation is causing a lot of financial stress and general anxiety. Let America Saves at Work help give you, the employer, a fresh perspective on what your employees may be experiencing.  

Three years after these loan payments were paused, a lot has changed in the country’s economic landscape – record inflation, decreased saving account balances, increased credit card debt, and rising interest rates.  

Student loan borrowers are concerned about how they will afford these payments. Many borrowers were hopeful loans would be forgiven. Without that prospect of forgiveness, they may be frustrated, angry, and overwhelmed. How do employers address this situation without judgement? 

Have you considered: 

• Providing your employees with tools and resources that can help them navigate their unique situation? America Saves recently published this blog about student loan payments filled with resources that your employees can use to find the right repayment plan. Providing guidance to employees who have a loan that is restarting can go a long way to strengthening the relationship with your people. 

• Helping employees shift their outlook from feeling overwhelmed to one of appreciation? Instead of focusing solely on the loan repayments they are obligated to make – focus on what they have gained - an education and/or job training.  
• Communicating related benefits that can help navigate their situation?

• Do you offer EAP services so they can talk to a counselor?  
• Do you offer tuition assistance so that those who have a loan but not a degree may be able to finally complete their education without the burden of additional loans?  

Empowering your employees to take the next best step in their unique financial situation is one way you can be a partner in building their financial confidence.

Their situation doesn’t have to be immediately resolved for them to feel more in control. That financial confidence we want our employees to have comes from knowing where they are, what they want, and what’s the next step in their plan to achieve their goals.  

If you have an idea for a Hot Topic in an upcoming ASAW Newsletter, please send it to save@americasaves.org.