Natixis Global Asset Management announced enhancements to its student loan repayment benefit.
The $1,000 annual benefit will now be available immediately to all employees with any federal or private student loans, eliminating the requirement to have five years’ tenure with the firm. Previously, the benefit was a $5,000 lump sum given to employees at their fifth anniversary with the firm and only federal loans were eligible.
The update to the benefit includes a payment in the amount of $83.33 per month made directly to the student loan provider up to the life of the loan, or a maximum of $10,000 over a 10-year period, as long as the individual is still employed by Natixis. This payment will be applied to the principal of the loan, thus reducing the interest paid and shortening the term of the loan.
Natixis implemented the employee benefit in December as a direct result of research from its Durable Portfolio Construction Research Center which showed that Generation X and Millennial workers delay saving for retirement because of the burden of student loan balances.
Currently, nearly 20% of Natixis employees are taking advantage of the student loan repayment benefit. The first payments of the benefit start this month.
“Helping people achieve their financial goals is at the heart of our business and our industry, so we knew that leading by example was the right thing to do,” says John Hailer, CEO of Natixis Global Asset Management in the Americas and Asia. “Today’s student loan burden is tomorrow’s underfunded retirement problem, so it is imperative for companies to join with policymakers, educators and employees to address this critical issue.”A recent survey by Beyond revealed 89% of job seekers with debt believe companies should offer student loan repayment as part of the benefits package.