Why College Tuition is an Employer Problem
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WHY COLLEGE TUITION IS AN EMPLOYER PROBLEM
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Transcript of Why College Tuition is an Employer Problem
WHY COLLEGE TUITION IS AN EMPLOYER PROBLEM
Today’s college students are graduating with an average of $37,0001 in debt. The collective tally grows at nearly $3,000 every second 2. It’s one of today’s largest factors in financial wellness. And it’s killing productivity at every level of the workforce.
FINANCIAL WELLNESS AT RISK
70% of managers say personal financial challenges impact employee performance3
1 “Student Debt Is About to Set Another Record, But the Picture Isn’t All Bad,” Josh Mitchell, WSJ.com, May 2, 2106
2 “Watch America’s student-loan debt grow $2,726 every second,” Jillian Berman, Marketwatch.com, January 30, 2016
3 Financial Wellness in the Workplace, SHRM, May 2014
Employees can’t focus at work because of debt. The future benefits of a college degree (higher pay, lower unemployment) fuel parents’ race to afford tuition, leading working mothers and fathers to spend hours and hours
trying to cobble together a financial plan for their children.
LOSS OF WORK HOURS
LOSS OF COMPANY LOYALTY New graduates are entering the workforce with crushing payments that are gobbling up starting salaries. As a result, employees are job hopping and foregoing specialized fields (that employers need) in order to pay off debts they took out years earlier4.
4 “Generating Interest; College Debt’s Toll on American Workers,” EdAssist®, 2016
The number of people over age 60 with student debt has exploded, growing 300% from 2005 to 20155 — faster than for any other age group. As a result, people can’t retire because of debt. Just as Millennials may choose their first job based on income rather than passion, established boomers may linger in a position for the cash flow, rather than a genuine commitment to the job.
LOSS OF ENGAGEMENT
5 “Baby boomers and student debt — the problem no one is talking about,” Jillian Berman, Marketwatch.com, January 10, 2017
What no one ever talks about is...why? Why do people take on so much debt? The answer is because they don’t see any alternatives. College is the goal, and loan rules are notoriously complex. The result is people blindly assembling
loans from multiple private providers without fully considering the future payments and long-term costs. Yet three-quarters of people paying educational debt call it a focal point of their lives, impacting them every single day4.
45% have no idea what interest
rate they’re paying
39% have three or more outstanding loans
LOAN REPAYMENT IS THE FOCAL POINT
4 “Generating Interest; College Debt’s Toll on American Workers,” EdAssist®, 2016
WHAT’S THE ANSWER? Productivity is suffering. Today’s working parents need
facts about wise loan decisions and how to borrow; today’s indebted need guidance on consolidating debt and making payments manageable; today’s young parents need advice
on how to save to be ready for tomorrow’s tuition.
Download our eBook to learn more.
Contact us to learn more. 800.453.9383 | [email protected]
brighthorizons.com/solutionsatwork | Follow us @BHatWork
© 2017 Bright Horizons Family Solutions LLC. All Rights Reserved. 20801.1703.1
GET THE FULL STORYTo learn more about how college debt is
killing productivity, download our eBook.
