Offer Student Loan Repayment Benefits Through Your Brokerage

Brokers play a pivotal role in navigating the complex world of benefits and insurance. As a broker, your expertise lies in finding innovative solutions that meet the unique needs of your clients.

Competitive Advantage

Most brokers don't offer student loan repayment benefits yet, representing a missed opportunity to stand out in the benefits market and help their clients attract top young talent (Moorjani, 2023). With many industries facing talent shortages, brokers who provide this benefit can gain a distinct competitive advantage and edge out the competition while helping their clients in recruiting recent graduates and young professionals with student debt.

Research shows that student loan assistance is highly desired by job seekers and can sway top candidates to accept job offers. Given the massive $1.7 trillion student debt crisis in America, the vast majority of college graduates are saddled with loans. Offering to help your clients employees pay these down makes an employer much more attractive to prospective hires. This can be especially impactful for smaller companies seeking to recruit against big institutions.

The data shows that student loan benefits offer employers a powerful tool to stand out, attract young talent, and build a strong workforce for the future. Getting ahead of the curve on this can provide a distinct competitive edge.

Easy, No-Cost Broker Setup

Offering student loan repayment benefits does not have to be an expensive endeavor for brokers. Brokers are relieved of any administrative load, and employers enjoy a seamless addition to their benefits offering with minimal effort.

Paidly effectively manages these programs at no cost to the broker and for a nominal monthly fee billed to the employer. For only under $7 per employee, This perk becomes a highly competitive option compared to costlier benefits, like 401(k) matching.

You gain access to complete, precise, and instant information about your clients. This effortless connectivity helps keep your business ahead of competition.

The monthly fees charged to your clients by Paidly are used to cover the operational aspects like enrollment, verification, payments to loan servicers, and tax reporting. This alleviates the administrative burden for the brokerage. With so little effort required by the employer, student loan repayment benefits offer an easy way to enhance your compensation package.

Some other factors that keep costs low:

• Contribution amounts are flexible each month. No need to commit to a set dollar amount.
• Payments go directly to employees' student loan servicer. No reimbursements to manage.
• Can cap total contributions annually to control overall spend.

With smart program design, student loan repayment benefits can provide high value to employees for no cost to the brokerage. This can give an edge in attracting top talent in a budget-friendly manner. Learn more about a Paidly partnership today.

Measure your ROI and improve employee retention

Create an informed employee retention strategy, see an estimate of your return on investmet when offering a Paidly student loan repayment benefit.

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Grow with Paidly, Brokers

In an era where differentiation is key, brokerages have to look beyond the traditional, exploring offerings that not only complement their existing portfolio but actively enhance it. Paidly's unique offerings stand out for several reasons that brokerages cannot afford to ignore.

Most notably:

• Increased Revenue: Incorporating Paidly into your portfolio isn't just about offering value to your clients; it's a strategic move towards boosting your bottom line. By presenting a service that empowers employees financially, you naturally drive interest in enhancing those gains, leading to higher uptake in ancillary services such as life insurance or 401(k) contributions.

• Organic Growth: When employees find themselves with more financial freedom, thanks to your firm and Paidly, they're more inclined to invest in additional financial products. This creates a seamless cycle of organic growth within your portfolio. As your clients' employees prosper, so does your range of selling opportunities.

Moreover, the integration of Paidly into your suite of services signals a commitment to innovation without the hassle.

• Effortless Integration with Zero Conflict: Unlike competing offerings that might clash with existing products, Paidly's solutions enrich your portfolio without overlap. This not only fortifies your relationship with clients by avoiding redundancies but also opens up new avenues for growth in spheres like Financial Advisory services.

• Minimal Effort, Maximum Impact: The logistical aspect of incorporating Paidly could not be more straightforward. Our team handles the legwork, ensuring that you can deliver exceptional value to your clients with minimal input. This ease of adoption makes Paidly an attractive proposition for brokerages looking to expand their offerings without expanding their workload.

Paidly represents an unparalleled opportunity for brokerages eager to stand out in a crowded market. By offering a product that drives revenue, fosters organic growth, complements existing services, and requires little to no extra effort to implement, brokerages are well-positioned to meet the evolving needs of their clients while simultaneously enhancing their operational efficiency and profitability.

Tax Benefits

Offering student loan repayment assistance provides brokers and their clients tax advantages. Under Section 127 of the Internal Revenue Code, employers can provide up to $5,250 per year per employee in educational assistance benefits tax-free. This includes payments made directly to employees or student loan servicers.

For employers, this is an attractive benefit because the payments are a deductible business expense. The amount is excluded from the employee's gross income, so they do not pay taxes on it either. This allows brokers to help their clients pay down student loans faster, without increasing taxable income.

The Section 127 deduction is higher than the student loan interest deduction, which phases out at higher incomes (kiplinger.com). It provides more substantial savings for both the brokerage and their clients across all income levels. With the student debt crisis impacting all generations, this benefit has very wide appeal.

Getting Started

To offer student loan repayment benefits, brokers will first need to determine the contribution amount and employee eligibility requirements. Many employers start with $50-100 per month per employee, with higher amounts for specialized roles. Eligibility is often based on being employed full-time, though some firms extend the benefit to part-time workers as well.

The next step is communicating the new program to your current and prospective clients' employees. Prominently featuring the benefit in job listings and on the company website helps attract job seekers with student debt. Internally, email announcements, intranet postings, and mentions during onboarding ensure current staff are aware of the new offering. Reminding companies employees at least annually about repayment benefits through emails or newsletters can further boost engagement and retention.

Offering to help pay down student loans is an impactful way for brokers to modernize their benefits package. With strategic communication and competitive contribution amounts, the program can aid recruiting and demonstrate to employees that their financial wellbeing matters. Interested in learning more or ready to get started? Reach out to us today.

A Clear Win-Win for Brokers

Offering student loan repayment benefits is a clear win-win for brokers and their clients. As we've discussed, this benefit can provide significant tax advantages, boost recruitment and retention, increase employee engagement, give a competitive edge, and has a relatively low cost to implement.

With over 40 million Americans struggling with student debt, this benefit directly addresses one of the biggest financial burdens for younger generations entering the workforce today. Employees appreciate employers who show they understand and want to help with this challenge.

Show Support

The benefits for both brokers and employees make this an offering every firm should strongly consider. The programs are straightforward to set up and the long-term payoff in terms of talent acquisition and loyalty is well worth the investment. Don't wait for competitors to use this benefit to lure away your clients. Take action now to show your clients you support them by offering a student loan repayment benefit plan. It's a smart strategic move that can pay dividends for years to come.

At Paidly, we understand the significance of trust in client relationships. We equip you with extensive resources and expertise to confidently address your clients' Student Loan Repayment Benefit concerns.

Let’s talk about a partnership today