Providing peanut butter is a perk of the employer-sponsored debt repayment scheme. By forming a partnership with Peanut Butter, businesses can offer their workers advantages like financial coaching and the chance to refinance their student loans every month while they work toward paying them off.
Employers may use Peanut Butter Student Loan Assistance to help their college grad workers manage their debt. Peanut Butter saw that graduates with student loan debt are highly sought-after prospects for employment and set out to provide a means by which organizations could differentiate themselves and attract this highly sought-after demographic.
Peanut Butter was established in 2015 and serves the medical, insurance, real estate, and garbage collection sectors. Employers who provide student debt repayment assistance programs can benefit in several ways, including recruitment, employee retention, and the company’s culture and diversity. Companies can keep their highly educated staff thanks to generous benefits packages that make them feel valued by the company.
How It Works For Employees
Peanut Butter is an alternative student loan perk that sends the money directly to the lender rather than to the employee each month. Because it assists employees in reducing their student loan debt, this perk may be more appealing to certain employees than higher wages or free coffee in the break room.
After the company has created its Peanut Butter account, it may send invitations to workers who are qualified to use it. They may report their loans, verify them, and then choose how their monthly allotment will be distributed. You can sign up in under five minutes.
How It Works For Employers
Businesses may tailor their offerings to their target demographic when deciding on a plan with Peanut Butter. Repaying student loans is one common perk, but other options include providing employees access to a loan assistance center or a debt restructuring marketplace.
Monthly loan payments for registered employees can be reduced by as much as $30, $50, $100, or a bespoke sum provided by participating firms. The company may set up a streamlined dashboard to monitor employee loan levels and schedule monthly payments to cover such deficits.
The software also makes it simple to suspend individual or bulk enrollment with a click and examine employees who have opted in and their loans. Plan costs are calculated by taking into account the total number of participants. There is a yearly base charge plus a per-member administration fee.
Benefits Of Peanut Butter Student Loan
It’s not hard to understand how Peanut Butter may benefit employees by providing additional contributions to repay their student loans. It can help free up more monthly income or assist in paying off loan amounts more quickly and at a lower cost.
Employers may find that offering attractive benefits, such as the Peanut Butter plan for student debt repayment, helps them attract and keep qualified workers. Employees may place less importance on a few additional dollars added to their monthly wage.
Still, if their employer contributes to their educational debt automatically—one that they don’t even need to think about—it can assist in easing the pressure of the employee’s need to repay student loans.
Disadvantages For Employees
The most significant disadvantage for workers is that not all can use or are interested in this perk. If you don’t have any payments to make on student loans, you probably would rather have your employer put that money toward your salary or some other perk instead.
Depending on where the employee is repaying their student loans, this perk for employees may only be available for a limited time. This student loan reimbursement will only help you until the remaining balance on your loans is paid off, which might be the case even if you plan to stay in your current job for a long time. You may need to renegotiate your remuneration with your employer to prevent financial hardship once it ends.
Disadvantages For Employers
The high price tag is the major drawback for business owners. They must pay administrative costs and make a monthly repayment commitment to their school loans. Assume a company pays $100 per month toward the student loans of 200 workers. Just the reimbursement itself costs $240,000 each year.
The annual cost increases to $254,500 when the basic charge ($2,500) and the administrative fee ($5 per participant monthly) are included. It’s important to consider the time and money involved if the HR department has to keep track of this perk.
Many people in today’s economy are still making payments on their student loans, making this perk desirable for companies to provide. However, platforms like Peanut Butter make it easier to administer this per-employee perk.
Peanut Butter may arrange this workplace perk for employees and businesses for a set yearly fee and monthly administration expense, providing access to financial counseling, information, tools, and even a marketplace for loan refinancing.
Peanut Butter Services
Peanut Butter provides complementary support services for companies and employees and facilitates student loan repayment.
- Services for confirming loan information and providing current data.
- Employer dashboard with extensive tools for enrollee management, document filing, and contribution monitoring.
- Help is available both online and over the phone.
- Having a Human Resources representative available to answer questions and advise businesses is a huge help.
Features For Employees
- Tools for visualizing repayment
- Methods for monetary fitness
- As-needed phone assistance
- Tips, guidance, and links related to student loans
- Marketplace for consolidating debts online
- Monitoring of current loans and employer contributions
Employers may help their college-educated workers with their student loan debt using the Peanut Butter Student Loan Assistance platform. Peanut Butter recognized that despite their student loan burden, these recent grads represent a desirable pool of talent, so they developed a way for firms to differentiate themselves and win over this demographic. Providing comprehensive benefits packages helps organizations attract and retain talented individuals with postsecondary education.