Education financing: approaches, considerations and the steps to launch an education financing offering

Authors: Kelly Lazzara Hannah Johnstone

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The average federal student loan debt has more than doubled since 2007, from $18,233 in 2007 to $37,850 in 2024. Unquestionably, employees will be bringing the stress of higher student debt to the workplace for many years to come. As of the fourth quarter of 2023, approximately 3.8 million Americans owe $112.2 billion in outstanding Parent PLUS loans. Additionally, 3.8 million parents of college graduates took out an average of $29,526 in federal Parent PLUS loans, confirming that student loan debt is a multi-generational issue.1

When it comes to the overall financial wellbeing of an individual or group, the subject of student loan benefits continues to be at the forefront of conversations. With heightened employee financial stress, legislative updates and a seemingly endless supply of providers, employers are considering which education financing approach is right for their organization.

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Source

1"Federal Student Loan Portfolio." Federal Student Aid, accessed 21 June 2024.

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