A Smarter Way to Retain Entry-Level Talent: Help Them Tackle Student Loan Debt

Entry-level employees have different priorities than those with more experience. They may still be on a parent’s health plan and appreciate office perks like free snacks (we all do some days, don’t we?)—but they’re also likely carrying student loan debt.

If your company values long-term impact and truly investing in employees, student loan repayment benefits are a powerful way to show it. More than just another perk, this benefit provides real financial relief, boosting retention and engagement in the process.

For early-career professionals, especially recent grads, student loan debt is more than just a monthly payment. It shapes how they think about their future—where they work, how long they stay, and even how engaged they are on the job. And the numbers back this up: 

• 72% of Millennial and Gen Z workers say they’d choose an employer offering student loan benefits over one that doesn’t. Fast Company 
• 86% of employees aged 22 to 33 would commit to a company for at least five years if it helped pay down their loans. SHRM 
• The average federal student loan balance is now $38,375, contributing to a staggering $1.77 trillion in total U.S. student debt. Education Data Initiative 

Why This Matters for Your Business

We talk a lot about making work meaningful, but the benefits we offer don’t always reflect what employees actually need. As the Feb 12, 2025 episode of HR Besties podcast put it: 

“[We want to focus on]…that sense of really understanding our people: being connected, listening, and taking action. Is it more effort? Yes. Is it strategic? Yes. But it’s more meaningful. People will feel a greater sense of belonging. People will fit, right? People will stay.” 

Former Apple and Accenture executive Christie Smith recently highlighted an ongoing employee engagement crisis, noting that corporate decisions, including rising layoffs, have significantly impacted employee sentiment. Newsweek 

For early-career employees, student loan help isn’t just a “nice-to-have.” It’s life-changing. Offering it shows you understand what they’re up against—and that you’re willing to invest in their future. And when people feel seen and supported, they stick around.  

A Special Note for Healthcare Employers 

If you’re hiring nurses, physical therapists, or other healthcare professionals, student debt can be an even bigger barrier. A 2023 study published in BMC Medical Education found that many healthcare graduates face repayment plans stretching decades, often with higher interest rates than other professions. And it’s not just about money—it’s about burnout, career decisions, and even whether they stay in the field. 

The study highlighted a sharp divide based on salary growth and debt load. High-paying specialties like surgery and obstetrics, along with professions like registered nursing (where many enter the field without graduate debt), tend to meet debt-to-income targets under standard repayment plans. But for roles like physician assistants—where salaries grow steadily but debt is moderate—extended repayment plans are often the only viable option, even though career earning potential remains strong. 

The real challenge shows up in fields like physical therapy. These careers often come with high student debt but slower salary growth, leaving many professionals financially strained right from the start. In fact, 29% of physical therapy graduates leave school with more debt than their entry-level salaries can reasonably support. This strain doesn’t just affect their finances—it shapes where they work, whether they pursue advanced certifications, and how long they stay in the profession. 

The study also found that healthcare workers from underrepresented groups tend to carry even more debt, making loan assistance an especially powerful way to level the playing field. Offering support here doesn’t just help with retention—it signals that you understand the realities your people are navigating and are willing to do something about it. 

Three Benefits to Consider to Support Entry-Level Talent Tackle Student Debt

There are three ways you can structure your student debt financing benefits:

1. Student Loan Retirement Match If your company offers a retirement match, some employees may be missing out because their student loan payments prevent them from contributing to a 401(k). With the Secure 2.0 Act, employers can now match student loan payments with contributions to an employee’s retirement account—helping them save for the future while paying off debt. Plus, these contributions are tax-advantaged, making it a win-win for both employers and employees. Learn more here.

2. Student Loan Contributions Employers can make direct contributions toward an employee’s student loan principal, providing meaningful financial relief and promoting long-term financial stability.

3. Student Loan Gifting Links Platforms like SavvyFi allow employees to link their student loans and generate a personalized gifting link, enabling friends and family to contribute. Companies can also foster a culture of financial support—encouraging employees to celebrate milestones by contributing to each other’s student loan payments instead of giving traditional gifts.

What about employees who do not have student loans? SavvyFi also offers 529 plan accounts for employees to save for future education expenses – whether it’s for themselves, a loved one or dependent or even a friend. Regulations around eligible expenses have expanded in recent years, so 529 funds can be used for more than just higher education. Eligible expenses are listed here and cover things from K-12 private school and even Roth IRA contributions after a predetermined period of time.

How to Make It Work

If this sounds like a fit for your team, it’s easier to roll out than you might think: 

1. Offer flexible support. Some companies contribute directly to loans; others offer financial coaching. The SavvyFi Education Bundle provides 529s for future education expenses, tuition reimbursement, student loan repayment, and student loan retirement matching features. 
2. Keep it simple. Make sure employees know how to access the benefit without jumping through hoops. 
3. Check in and adjust. Needs change, so it’s worth revisiting your approach every year or so. 

This isn’t just about retention (though it definitely helps with that). It’s about showing your team you value what they value. And when you do that? People don’t just work for you—they invest back in your business with loyalty, energy, and trust.