Congratulations, Class of 2025! You’ve crossed the stage, turned the tassel, and now you’re staring down the next big milestone: starting your career. But for millions of graduates, something looms large in the background—student debt.
As of 2025, 43 million Americans collectively hold more than $1.6 trillion in federal student loans, with the average borrower owing approximately $37,000. This debt doesn’t just weigh on recent graduates—it affects their families too. Many parents are taking on Parent PLUS loans, becoming co-borrowers in the process and sharing in the long-term financial impact.
The ripple effect? Reduced homeownership rates, delayed family planning, fewer retirement contributions, and heightened financial stress—making student debt a serious employee wellness concern.
Why Student Debt is a Workplace Wellness Issue
Employee financial stress is a growing concern for employers. It has been reported that financial anxiety is now the top stressor for U.S. workers. That stress doesn't just stay at home—it shows up in the workplace as lost productivity, burnout, and turnover.
Financial wellness used to mean retirement education and 401(k) matching. But today, employers are realizing they must evolve their offerings to address the most immediate and pressing issue facing younger employees: student loans.
In fact, over 60% of employees consider student debt relief benefits a deciding factor when accepting or staying in a job—rising to 71% among Gen Z workers. Recognizing this shift, employers are now integrating student loan support into their broader benefits strategies.
3 Ways Employers Can Help
Create awareness and provide education: The first step is ensuring employees are aware of their options. Many borrowers lack clarity on how to navigate repayment, forgiveness programs, and refinancing. Employers can support them by partnering with financial wellness providers who offer tools, workshops, and one-on-one guidance. Providing clear educational materials on topics like interest rates, loan types, and programs such as Public Service Loan Forgiveness (PSLF) helps employees take informed steps toward repayment. Equally important is helping employees understand the nuances of refinancing. While it may seem like a smart move, refinancing federal loans can disqualify borrowers from valuable benefits like income-driven repayment plans and federal forgiveness programs. Employers who vet solution partners should ensure those partners explain these risks clearly. Simply offering access to reputable information significantly improves trust and engagement among employees.
Offer refinancing support: For employees with high-interest private loans or a stable financial footing, refinancing can offer meaningful savings. Employers can play a role by curating a list of trusted refinancing partners, negotiating favorable interest rates or exclusive incentives, and offering support in navigating the application process. However, communication is crucial. Refinancing federal loans through private lenders can permanently remove access to federal programs and protections. Employers must emphasize this point and guide employees to weigh pros and cons based on their financial situation. Providing access to advisors or decision support tools can go a long way in helping employees make informed choices.
Provide direct financial assistance: Helping employees tackle student debt through direct financial assistance is one of the most powerful steps an employer can take. These contributions can be structured in a variety of ways—such as monthly payments toward loan balances, retention-driven increases, or even replacing traditional hiring bonuses with student loan support. For example, the SECURE 2.0 Act further strengthens this approach by allowing employers to match student loan payments with 401(k) contributions—so employees can reduce their debt without missing out on retirement savings. Additionally, for employers focused on long-term retention, a tiered assistance program can be particularly effective. Starting with smaller monthly contributions (e.g., $50–$100) and increasing them over time rewards loyalty and supports employees throughout their financial journey.
The Bottom Line
Student loan debt has become a defining challenge for today’s workforce—especially new grads. By addressing this issue head-on through education, refinancing support, and direct contributions, employers not only improve financial wellness but also strengthen recruitment, retention, and morale. Helping employees with student loan debt isn’t just a generous perk—it’s a competitive advantage.
