New Survey Reveals Education Benefit Offerings and Utilization
Student loan repayment assistance programs are a growing employee benefit offering in the U.S. according to a new report from the International Foundation of Employee Benefit Plans, Education Benefits: 2024 Survey Report. The International Foundation last conducted this survey in 2019 and only 4% of organizations offered a repayment program at that time. In 2024, the percentage more than tripled to 14%. Another 18% of organizations are considering adding a program.
The top reasons employers consider student loan repayment programs are to attract future talent (92%), retain current employees (80%), maintain or increase employee satisfaction and loyalty (58%), and remain competitive within the industry/region (55%). Of those organizations that do offer the benefit, 60% use an external vendor, while 40% process the repayments internally.
When I spoke with Julie Stich, CEBS, Vice President of Content at the International Foundation, she noted that student loan repayment assistance is still an emerging benefit offering, but its significant growth shows strong interest in the marketplace. Organizations are implementing a variety of eligibility requirements and other program parameters, indicating that some employers are likely still determining the most effective way to manage this valued benefit.
Respondents indicated the following barriers/challenges to implementing a program:
- 48%—Determining return on investment
- 48%—Too costly
- 34%—Resentment among workers who have already paid off loans
- 30%—Resentment among workers who have ineligible loan debt
- 28%—Uncertainty/complexity of implementation/administration
Tuition Reimbursement
More than nine in ten U.S. organizations (92%) offer some sort of educational benefit, the most common of which is tuition reimbursement. The most common educational benefits have stayed the same, though there have been some shifts in prevalence since 2019.
- 57%—Tuition assistance/reimbursement (down from 63% in 2019)
- 50%—In-house training seminars (down from 61% in 2019)
- 47%—Educational conferences (down from 51% in 2019)
- 45%—Continuing education courses (down from 50% in 2019)
- 40%—Personal development courses (up from 38% in 2019)
- 37%—Licensing courses/exams (down from 44% in 2019)
The three primary reasons organizations offer a tuition reimbursement program are to retain current employees (81%), maintain or increase employee satisfaction and loyalty (73%), and attract future talent (69%). Survey results indicate that organizations implement a variety of methods to determine eligibility and provide reimbursement.
When asked about employee participation, 20% of organizations indicated a utilization rate of less than 1% and another 50% indicated utilization between 1% and 5%. Stich noted that overall utilization rates are low and not a large financial commitment for most organizations compared to other benefit offerings. However, tuition reimbursement is a highly valued benefit and a useful recruitment and retention tool.
For more information on Education Benefits: 2024 Survey Report, visit www.ifebp.org/edubenefits2024
