To attract younger talent, help repay student loans — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

To attract younger talent, help repay student loans

Get PDF file

by on
in Hiring,Human Resources

If your organization is eager to lure younger talent, the average 2006 college graduate owes $20,000 in student loans. That's why a growing number of organizations are turning student debt into a powerful tool for recruiting and retaining recent grads. Examples:

  • Federal agencies can repay employees up to $10,000 in student loans each year—and $60,000 total. In return, employees must agree to stay with the agency for at least three years.
  • The Minnesota state government pays large portions of student loans for pharmacists who agree to take jobs in rural areas.
  • Wyoming repays up to $12,000 in student loans for graduates of University of Wyoming programs in special education, math or science who agree to work in the state for at least two years.
  • Kennedy Krieger Institute, a children's hospital in Baltimore, offers to repay student loans up to about $10,000.

Tips: Never offer that repayment in one lump sum; attach some strings. Encourage retention by offering to repay a portion of students' debt gradually over the time they remain with your company. Consider a provision that requires them to pay back any amounts if they quit within a year or two.  

Leave a Comment

Previous post:

Next post: