Standard Insurance Company Partners with BenefitEd to Offer Employer-Assisted Education Benefits

Strategic Insights -

The Standard Insurance Company has announced a partnership with BenefitEd, a leading provider of student loan repayment and college savings services, to offer customized education assistance products to employers. This collaboration aims to help employees manage the cost of education, particularly millennials and Gen Xers who carry the lion's share of student loan debt. The partnership includes a range of benefits, such as employer-assisted student loan repayment, employer-assisted college savings, tuition reimbursement, and employee choice for tax-free matching funds.

Key Takeaways:

  • The partnership between The Standard and BenefitEd allows employers to offer customized education assistance products to their employees, including employer-assisted student loan repayment, employer-assisted college savings, tuition reimbursement, and employee choice for tax-free matching funds.
  • The program aims to curb the high cost of education and foster employee retention, particularly among millennials and Gen Xers who carry the lion's share of student loan debt.
  • In the United States, 42.7 million people have federal student loan debt, totaling $1.777 trillion.
  • Millennials are the largest generation in the workforce today and employers are seeing a steady rise in job turnover rates for this group as debt management continues to be a major financial stressor.
  • The partnership offers a discounted rate for clients of The Standard, allowing them to contract directly with BenefitEd and access these products.
  • The benefits of the partnership include:

+ Employer-assisted student loan repayment: Employees can pay down student loan debt with tax-free direct contributions or matching programs.

+ Employer-assisted college savings: Employees can pay for their own or their family's future education through supplemented 529 college savings contributions, which encourages financial planning.

+ Tuition reimbursement: Employers can ease their administrative burden by working with BenefitEd to manage tuition reimbursement programs that reward employees for continuing their education.

+ Employee choice: Employees can choose the tax-free option for their matching funds — retirement savings, student loan repayment, or both — without employers having to adjust their benefits budget.

  • The partnership has been recognized as a strategic move to enhance workers' financial security and bolster employee retention.

Statistics:

  • 42.7 million people in the United States have federal student loan debt, totaling $1.777 trillion.
  • Millennials and Gen Xers (25-49 years old) carry the lion's share of student loan debt.
  • Millenials are the largest generation in the workforce today.
  • 25-49-year-olds are seeing a steady rise in job turnover rates due to debt management being a major financial stressor.
  • The partnership between The Standard and BenefitEd offers a discounted rate for clients, allowing them to contract directly with BenefitEd and access these products.

Sources:

  • Standard Insurance Company, "The Standard Partners with BenefitEd to Offer Education Assistance Products" (September 8, 2017)
  • BenefitEd, "About Us" (no date)
  • Ameritas, "About Ameritas" (no date)
  • Nelnet, Inc., "About Nelnet" (no date)