Student Loan Debt Remains a ‘Pain Point’ for Employees
A recalculation of student loan payments, announced July 14 by the U.S. Department of Education, will?erase the balance for certain loans?such as the Federal Family Education Loans program. More than 800,000 loan holders will be covered.
The announcement comes after the Supreme Court in June?struck down?the Biden administration's student loan forgiveness plan.
Not all employees with school debt will qualify for the federal forgiveness plan. Depending on where they work, though, they may find relief through employers that offer paydown benefits for eligible workers.
"Faced with such a heavy burden, borrowers are often?unable to save?for emergencies and retirement, and delay big life events," Fidelity noted on its website.
Employers have been helping in two ways, according to Fidelity Investments: