Feel the weight of your student loans bearing down on you? You're far from alone, and this episode is a must-listen as we team up with Amy Ulrich-Nelson from Attigo by Ascendium to examine the profound influence education debt has on employees and the workplace.
In her role as Ascendium Sales Director, Amy draws on her experience in Education Assistance Program administration, student loan repayment support, and strategic employee benefits design.
In this episode of the HRchat Podcast, we discuss the burden of education debt on employees, the wins that employers achieve when they provide student loan repayment support, and key strategies for creating a program.
Questions for Amy include:
More About Ascendium Education Group
For more than 50 years, Ascendium’s mission has been to make learning beyond high school available to everyone so they can reach their highest potential. For the past three years, Ascendium has been named a Top Workplace, both in the US and in the Madison, Wisconsin, area. Learn more at: attigo.com
We do our best to ensure editorial objectivity. The views and ideas shared by our guests and sponsors are entirely independent of The HR Gazette, HRchat Podcast and Iceni Media Inc.
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Feel the weight of your student loans bearing down on you? You're far from alone, and this episode is a must-listen as we team up with Amy Ulrich-Nelson from Attigo by Ascendium to examine the profound influence education debt has on employees and the workplace.
In her role as Ascendium Sales Director, Amy draws on her experience in Education Assistance Program administration, student loan repayment support, and strategic employee benefits design.
In this episode of the HRchat Podcast, we discuss the burden of education debt on employees, the wins that employers achieve when they provide student loan repayment support, and key strategies for creating a program.
Questions for Amy include:
More About Ascendium Education Group
For more than 50 years, Ascendium’s mission has been to make learning beyond high school available to everyone so they can reach their highest potential. For the past three years, Ascendium has been named a Top Workplace, both in the US and in the Madison, Wisconsin, area. Learn more at: attigo.com
We do our best to ensure editorial objectivity. The views and ideas shared by our guests and sponsors are entirely independent of The HR Gazette, HRchat Podcast and Iceni Media Inc.
Feature Your Brand on the HRchat Podcast
The HRchat show has had 100,000s of downloads and is frequently listed as one of the most popular global podcasts for HR pros, Talent execs and leaders. It is ranked in the top ten in the world based on traffic, social media followers, domain authority & freshness. The podcast is also ranked as the Best Canadian HR Podcast by FeedSpot and one of the top 10% most popular shows by Listen Score.
Want to share the story of how your business is helping to shape the world of work? We offer sponsored episodes, audio adverts, email campaigns, and a host of other options. Check out packages here.
Welcome to the HR Chat Show, one of the world's most downloaded and shared podcasts designed for HR pros, talent execs, tech enthusiasts and business leaders. For hundreds more episodes and what's new in the world of work, subscribe to the show, follow us on social media and visit HRGazettecom.
Speaker 2:Welcome to another episode of the HR Chat Show. I'm your host today, bill Bannum. In this episode we're going to discuss the burden of education debt on employees, the wins that employers achieve when they provide student loan repayment support and key strategies for creating a program. My awesome guest today is Amy Nelson, an industry veteran who has been helping organisations implement strategic plans to meet their recruitment and retention goals for more than two decades. In her role as Ascendium Sales Director, amy draws on her experience in education assistance, program administration, student loan repayment support and strategic employee benefits design. Amy, welcome to the show today.
Speaker 3:Thank you very much, bill, for the wonderful introduction, and I'm thrilled to chat with you today. I have been so fortunate to work for organisations that are focused on supporting the pursuit of a post-secondary education. I can tell you that it is a gift for me to go to work every day, knowing that what I do can change the trajectory of somebody's life. However, I will tell you that when I'm not at work, I'm following my passion to meet as many people as I can before I take my last breath, and I will tell you that my greatest accomplishment today is my family and also meeting you, bill. I've been happily married to the most amazing man for 31 years. We have two accomplished adult sons who, I might add, have finally brought some girls into my life. I have two beautiful daughter-in-laws, and our little family continues to grow with the addition of two grandbabies. This is telling me that I should really be looking forward to what the next two decades of my life will look like, and I thoroughly am.
Speaker 2:Well, that sounds pretty awesome to me. Do you keep count of all the people you've met in your life? Where are you at at the moment? 10,000 and something. Have you got a number?
Speaker 3:It's got to be more than that. It absolutely has to be more than that. When I graduated from college, I had no clue what I was going to do. I just had an epiphany one day that I was put on the surface to meet as many people as I can, and I equated that to a profession which was sales. I honestly cannot tell you how excited I am every morning to get up and go to work and meet all these awesome people that are changing lives.
Speaker 2:Well, you're a pretty warm, gregarious person, so I'd say that you've chosen the right line of work. Hey, tell me about the mission of Ascendium.
Speaker 3:Sure. So our mission at Ascendium is to champion opportunity for everyone. We accomplish this by helping borrowers successfully repay their student loans, providing colleges and businesses with solutions that promote student and employee success, funding initiatives that increase outcomes for learners from low income backgrounds, and investing in companies that advance change for education and workforce training systems. We believe that education and training beyond high school has the power to help people reach their highest potential, but while not every while everyone has the potential to succeed, we feel that not everyone has that same opportunity. That's why we focus on removing the barriers preventing people from achieving academic and career goals that matter most to them. I would wrap up by saying that, at Ascendium, our vision is a world where everyone has an opportunity to rise.
Speaker 4:Thanks for listening to this episode of the HRChat podcast. If you enjoy the audio content we produce, you'll love our articles on the HR Gazette. Learn more at hrgazettecom. And now back to the show.
Speaker 2:What are some of the challenges facing learners from low income backgrounds?
Speaker 3:We're determined to elevate opportunities and outcomes for learners from low income backgrounds so that they can secure good jobs and achieve upward mobility. So, while all learners face obstacles at every stage of their post-secondary journey, it can be anywhere from enrollment through completion, to entry into the workforce. So, going back to what our mission is as an organization and the things that we support, we've keyed in on those areas. Our philanthropy takes it a step further and aims to clear the path for those whose route to and through post-secondary education and workforce training contains a disproportionate number of stumbling blocks.
Speaker 2:Okay, thank you very much. Maybe you can give us a bit more context. What is the status of student loan repayment in the US at the moment?
Speaker 3:For the average student loan borrower, there is an overwhelming sense of anxiety and confusion about their debt. This week we hear in the US we are hearing about student loan forgiveness and the talk about new payment plans. I would tell you from where I sit. It's daily which ultimately can lead to confusion about eligibility and access.
Speaker 3:What I can tell you is this 43 million federal student loan borrowers were part of the federal student loan payment pause that lasted here in the United States from March 2020 to October 1, 2023. During that time, there was a lot of discussion about student loan forgiveness, but in the end, that math forgiveness did not happen. So with that, this fall, according to the Department of Education, 40% of the 22 million borrowers in repayment status who had bills due in October of 2023 failed to make their payment as of late November 2023. Keep in mind that the average monthly bill hovers somewhere between $200 and $299 per person, although that number can be even higher for borrowers that include graduate, postgraduate and those parent, plus borrowers who may have multiple dependents that they borrowed student loans for. I will end with this, as our many Americans currently struggling to make ends meet. Us News has reported that 75% of federal student loan borrowers have had to reduce their savings, reduce contributions to an emergency fund, forgo the decision to buy a new home and reduce contributing to their own retirement.
Speaker 2:Okay, wow, thank you very much. So why should employers care about the burden of student debts? It's not their problem, or is it? Maybe this burden actually has an effect on the outlook of their employees and the productivity of their employees and all the rest of it? Tell us more.
Speaker 3:Yeah, and I think my response is really going to change and at least is going to be a consideration for employers and anyone who's listening to our chat here. So there are several. There are many reasons why employers should care and have student loan debt on their radar now and in the future. The top two at the list are employee well-being and an employer's need to attract and retain talent. So let's start with employee well-being Super important. You want to go to work every day, you want to feel like it's a gift and you want to show up and be productive.
Speaker 3:Studies have shown that student loan debt is linked to physical and mental health issues which can have an impact on an employee's daily performance. In our national survey of over 4,000 student loan borrowers, Ascendium found that 58% of the respondents said that their productivity is affected because of their personal financial issues. 93% of them indicated that they are dealing with those financial stressors while they're on the job, and 24% of those respondents indicated that they spend more than a whopping 20 hours per month dealing with their personal financial issues while they're at work. This is a big one. Student loan debt is the second largest type of debt owed behind mortgages. Again, there are 43 million federal student loan borrowers here in the United States, owing an average of a little over $37,000 each. With the cost of living as high as it is, paying down student loan debt further exacerbate financial stress. That stress is having an impact on employee performance and productivity in the workplace. So that's on the employee well-being side.
Speaker 3:I want to couple that information with why this is a great employer strategy. The labor market isn't slowing. Talent acquisition and retention are not getting any easier for HR leaders, and this is not expected to change in the near future. Benefits will continue to play a critical role in helping attract and retain top candidates and employees. I just want to add a personal note here. I buy a car because it has a sunroof, not because it has wheels. Where I see this benefit currently being is a benefit that your top candidates because we know that competition for top talent is fierce your top candidates are going to be looking for those employers that have a benefit that is something other than the norm. We know that having a student loan pay down benefit helps you stand out.
Speaker 3:According to EBRI's financial wellness employer survey, for the first time ever, employers' greatest financial worry for their employees is the rising cost of living. I will also add that that is up from number four last year and could prompt employers to offer benefits like student loan repayment assistance. 80% of employers that offer benefits expect to increase their financial wellness support in 2024. So, going back to what I talked about in terms of your employee being productive, they've found that the top financial stressors for their employees are the high cost of living, followed by retirement preparedness, healthcare costs, budgeting and money management and daily living expenses. So Bank of America every year does a study on workplace benefits and in 2023, that study has said 64% of employees are stressed about their finances. Concurrently, 92% of employers who offer resources to support overall financial wellbeing say that they've seen a reduction in employee stress. We know that by adding a student loan, repayment assistance is going to continue to be one of the fastest growing non-health benefits in 2024 and beyond.
Speaker 2:Okay, thank you, Amy. So follow up to that. What kind of support can employers provide?
Speaker 3:There are several different options available for an employer when they're considering offering a student loan repayment benefit. I would always recommend that the employer identify their short-term, long-term goals and objectives, along with their budget for offering the benefit.
Speaker 3:The types of assistance that you can consider are the actual student loan repayment assistance, which is the pay-down option here in the United States. That's where employers make contributions to their employees' student loans, which is a provision provided through the CARES Act legislation, and it is tax-free up to $5,250 for both the employer and the employee. As of January 1st of 2024, an employer can also make matching contributions to an employee's retirement account, which is a provision of the Secure 2.0 legislation. This is where employees make their student loans, and it's considered an elective deferral for matching purposes for their 401k, 403b plan or retirement account. The next two options are options that I always tell employees when they're just thinking about offering these benefits. This is a great place to start and that student loan counseling, where your borrowers will receive one-on-one student loan repayment counseling from a trustworthy source. Then, last, I would highly recommend an online financial education platform that can provide self-help resources specifically for student loan borrowing to both your employees and their dependents.
Speaker 2:Wonderful. Thank you very much. Next question is pretty straightforward what makes Ascendium different? What makes Ascendium stand out from other providers out there?
Speaker 3:As an admission-driven nonprofit with more than 55 years of deep student loan expertise, our knowledge of federal student loan policy programs and servicing here in the United States is unmatched in the industry. We simplify the complex and have provided resources to tens of millions of people achieving to help them achieve their student loan repayment success. We are very, very proud of this as a trusted expert. Ascendium is a leading education philanthropy that invests over $100 million annually to make education and training beyond high school reality for all learners In general. While other vendors provide similar technology, at Ascendium we offer a comprehensive suite of solutions with an emphasis on trustworthy guidance.
Speaker 2:Oh, I like that. That was good. That was almost the elevator pitch. You did that one pretty smoothly. Good one. How would an employer get started then if they were interested in learning more?
Speaker 3:It can be daunting for some, but that's why we're here to help. The process of implementing a student loan repayment assistance, as I said previously, is that it varies depending upon your goals, objectives, your organization structure, your budget and, really most importantly, your timetable. But I would say with any other educational assistance program that a company offers, they really need to consider what their requirements are. They need to develop a student loan repayment policy and then determine how to fund the program. Our team at Ascendium has developed an Employer's Guide to Student Loan Repayment Assistance which considers all of those things plus statistics and data to build a case around offering the benefits. So look at it like as a pitch for your executives All of the IRS regulations for the two the CARES Act and the Secure 2.0 legislation. We have some policy approaches on there and then steps at creating and implementing it.
Speaker 3:If you're interested in the e-book, I would tell you to visit attigocom to get a free copy of the Ascendium e-book. That's a-t-t-i-g-ocom, sort of like Attaboy or Attigo. That's what it sounds like. Attigo actually means to reach or achieve, which encompasses our mission and philanthropic commitment as a nonprofit organization.
Speaker 2:OK, we are flying through this. I want to talk a bit about community. Giving is a key value for Ascendium's employees, of course, who live in the communities that they serve, and you guys are talking about this all the time on your social media. Good for you. Tell us about the Ascendium CARES or, I should say, hashtag, ascendium CARES and other CSR programs that Ascendium supports.
Speaker 3:As you mentioned as an Ascendium employee, we are committed to making a difference in the communities where we live and work, and you mentioned the Ascendium CARES program. That program embodies the commitment and we encourage everyone at Ascendium to get involved. Our employees have an option of serving others in their local communities and Ascendium provides up to eight hours of paid time off each year to volunteer through an activity organized by Ascendium CARES employee ambassadors or at a nonprofit of their choice. Ascendium then further amplifies our volunteer time by matching that volunteer time with dollars, and that program is called Dollars for Doers. So, as an example, in 2023, our team served 33 local nonprofit organizations with a little over 1,300 volunteer hours, and Ascendium, through the Dollars for Doers program, provided an additional $27,000 to those organizations. The Ascendium team took it a step further and served an additional 4,800 hours of volunteer time, which we call Beyond VTO.
Speaker 3:I also want to mention that our employees are personally. Our employees are encouraged to personally donate to local nonprofits to make their community a better place. Ascendium matches $3 for every $1 an employee donates to eligible nonprofits. In 2023, those donations and the Ascendium match were over $515,000 to 97 local nonprofits. You can see it is very important to us that nonprofit mission and to support and be good community members where we live and work.
Speaker 2:Awesome. And just finally for today, how can our listeners connect with you and learn more about Ascendium?
Speaker 3:I would encourage again companies to visit atagocom again. That's atagocom where you can learn more about the great work that we're doing to support all student loan borrowers and student loan repayment assistance through employee benefit solutions. While you're there, don't forget to get that free copy of our ebook, the Employer's Guide to Student Loan Repayment Assistance, which is your trustworthy guide to sharing a student loan repayment assistance, to offering a student loan repayment assistance program.
Speaker 2:Excellent. Well, amy, I've got to say I like you. I think you're a pretty cool lady. And we're going to have to do this again soon. Ok, but for now, that just leaves me to say thank you very much for being my guest.
Speaker 3:Thank you so much for chatting with me today. It certainly was a pleasure to visit with you.
Speaker 2:And listeners as always. Until next time, happy working.
Speaker 1:Thanks for listening to the HR Chat Show. If you enjoyed this episode, why not subscribe and listen to some of the hundreds of episodes published by HR Gazette and remember for what's new in the world of work? Subscribe to the show, follow us on social media and visit HR Gazettecom.