Abbott: Survey Shows Most College Students with Debt Want a Company that Offers Loan Relief

The YouGov-Abbott Student Loan Impact Survey shows 87% of those in college or graduating this year with student debt say finding a company with a student loan benefit is important to them; additionally, over 6 in 10 working adults with student loans would consider switching to a company with a student loan employee benefit

Originally Published by Abbott.

Student loan debt – affecting 1 in 4 Americans and topping $1.5 trillion – is one of the most pressing concerns of students graduating college this spring.

Nearly 70% of graduates today have taken out a loan – and a recent survey of college students shows that 9 out of 10 of them are on the hunt for a company with a student loan perk. The survey of 2,594 U.S. adults by YouGov on behalf of Abbott (NYSE: ABT), the global health technology company, also revealed:

  • 62% of employed adults with student loans would consider switching companies to gain a student loan relief employee benefit
  • 64% of all adults with student loans say finding a company that offers a student loan benefit is important
  • 42% of adults with student loans aren’t saving for retirement due to their student loans, including almost half (48%) of people with student debt ages 18-34 and over a third (34%) of those 55 or older
  • 70% of Black and 76% of Hispanic Americans with student loan debt say finding an employer with a student debt employee benefit is important – almost half of each group (49% and 47% respectively) say it’s “very important”

“We’ve already had people join our company because of this student loan benefit since launching it last year,” said Steve Fussell, executive vice president of Human Resources, Abbott. “We knew student loans were weighing on our employees, and on the minds of candidates, but what we learned through this survey is this issue matters even more than we knew.”

A Recent Grad’s Perspective

Harvir Humpal, 24, joined the company in Pleasanton, Calif., late last year as a development quality engineer. While he had his pick of companies to choose from (he received three offers from medical device companies after graduating with his master’s in biomedical engineering), he chose Abbott in part because it offered a benefit to help him pay off his nearly $60,000 in student loans about four years faster, saving more than $7,000 in interest – while also saving for retirement.

“It helped me understand that Abbott really cares about new graduates and appreciates that this is a systemic issue,” Humpal said. “A lot of my friends also have between $10,000 and $100,000 in student loans, which affects every aspect of our lives.”

Abbott’s Freedom 2 Save program enables Humpal and hundreds of other employees to divert the 2% minimum contribution they’d normally have to contribute to their 401(k) accounts to receive a 5% match to pay off their loans faster. When they show that they’re using at least 2% of their eligible pay to whittle down loans, the company kicks in with a 5% contribution to their 401(k) accounts – without them having to contribute a dime.

An Employee Who Switched

Shannon Ramirez, 42, one of Abbott’s learning and development supervisors based in Minnetonka, Minn., didn’t go to college right away when she was younger, but after her son was born in 2009, she was inspired to start chipping away at classes to earn her organizational leadership degree. Along the way, she’s picked up more than $50,000 in student loans.

Abbott’s Freedom 2 Save benefit and tuition assistance program are big reasons why she decided to leave her recruiting firm and join Abbott.  Tack on meaningful work helping employees navigate new jobs, and she said she hopes to have a long career at Abbott.

“I heard about Freedom 2 Save through an article on LinkedIn and immediately thought ‘Oh my gosh this could change my life,'” Ramirez said. “I put my heart and soul into everything I do, so to have my commitment to education clearly valued by Abbott makes me proud to be here and even more motivated to keep going.”

Better than Cash – an Investment in Employees

Employees with $40,000 in debt would pay off their loans, on average, three years sooner by diverting an additional 2% of their eligible pay towards debt repayment. If they used Freedom 2 Save for 10 years, with a starting salary of $70,000 (and 3% annual merit increases and 6% market return), they would also accumulate about $54,000 in their 401(k) plan account, without making any contribution of their own.

About 4% of companies today offer a cash reward to help employees with student loans – and one-third of employers are expected to follow suit by offering some type of student loan debt program, according to the Employee Benefits Research Institute.

“Companies cite a number of reasons, but the top ones are employee retention and reduced employee stress,” said Lori Lucas, president and CEO of the Employee Benefit Research Institute.

Abbott found its structure to be more valuable for employees than cash rewards in the long run because the investment is worth more over time, as it grows tax-deferred.

“The program pays for itself,” Fussell said. “Our employees are happier, more engaged, more productive and they stay longer. That’s good business.”

Latest News

President Joe Biden signs his first executive orders in the Oval Office

Biden Administration Already Hard at Work Enacting Numerous Beneficial Policies; Amanda Gorman is America’s New Superstar Poet; and More

President Joe Biden sworn in and new administration already hard at work. Just hours after his emotional, star-studded and highly protected inauguration took place on Jan. 20, President Joe Biden is already working on fulfilling campaign promises and undoing some of the most egregious acts carried out by his predecessor….

Trump commission attempts racist whitewashing of history

Trump Commission Attempts Racist Whitewashing of History; Colorado Rep. Lauren Boebert Probed for Potential Role in Capitol Insurrection; and More

Trump commission’s “1776 Report” attempts racist whitewashing of history In the highly controversial “1776 Report” released by the Trump administration yesterday, the outgoing GOP party doesn’t just try to present a nonpartisan, “patriotic” look at the nation’s history (as the President had promised the report would do) it fully rewrites…

Flint, Michigan water plant

Ex-Michigan Governor Charged for Racist Lead Poisoning of Flint Water Supply; COVID-19 Vaccines Not Increasing in Availability; Democrats Plan to Repeal Trump Rules; and More

Former Michigan Governor formally charged for poisoning thousands of predominantly Black Flint citizens with water containing lead. In 2014, when the city of Flint was forced by the state to begin taking its water supply from the Flint river rather than using water from nearby Detroit as it had for…

NYPD under suit

NYPD Sued for Years of Racial Abuse and Use of Excessive Force; Trump Administration Approves Discrimination Against LGBTQ individuals; and More

NYPD sued by Attorney General for years of racial abuse and use of excessive force. In what’s been called a “landmark lawsuit,” The New York Times has reported that New York state Attorney General Letitia James is suing the city of New York, the mayor and the NYPD’s leaders, alleging…

NBCUniversal News Group Launches NBCU Academy, Offering Training to Universities and Community Colleges

NBCUniversal News Group launched NBCU Academy, a new, innovative, multiplatform journalism training and development program for four-year university and community college students through education, on-campus training and online programming. Originally published on corporate.comcast.com. The initiative includes a curated onsite curriculum for hands-on learning experience with world-class NBCU News Group journalists,…

Kaiser

Kaiser Permanente: Committing $8.15M for Racial Equity

Originally published on about.kaiserpermanente.org. Grants to grassroots and nonprofit organizations will help address structural racism and practices that prevent communities of color from achieving good health and well-being. Kaiser Permanente (DiversityInc Hall of Fame), the nation’s largest integrated, nonprofit health system, has awarded $8.15 million to support dozens of nonprofit…