For Immediate Release
November 2, 2016
ABA Media Contact: Mike Townsend
(202) 663-5471
Email: mtownsend@aba.com
Follow us on Twitter: @ABABankers

ABA Announces New Employee Benefit to Help Repay Student Loans

​WASHINGTON — The American Bankers Association has announced a new benefit to assist its employees with repaying student debt. Beginning in December, ABA will provide each eligible employee up to $1,200 per year toward the payment of student debt, in addition to their current compensation. According to a 2016 report by the Society for Human Resource Management, only 4 percent of employers nationwide offer a student loan repayment benefit.
 
“Student loan burden affects a significant portion of our nation’s workforce – particularly millennials,” said Rob Nichols, ABA’s president and CEO. “ABA employees are working hard to advance the banking industry, and we want to help them reach their financial goals, whether it’s buying a house, saving for retirement or pursuing further education.”
 
All full-time and reduced work week employees are eligible. Beginning in December, employees who have registered for this benefit will receive monthly employer contributions. ABA will contribute $100 per month toward each participating employee’s student loans, up to a lifetime maximum contribution of $10,000.
 
“This new ABA benefit represents a major investment in human capital on the part of our employees that will help ABA serve bankers and build success for the industry,” said Nichols. “We hope this addition to our comprehensive benefits package will further position ABA as one of the best places to work in Washington.” 
 
ABA’s introduction of this new benefit is just the first step as the organization works more broadly to mitigate the burden of student loan debt in America. The association’s Endorsed Solutions group is currently reviewing vendor options to help ABA members who are interested in offering a similar benefit to their own employees.
 
“We’re encouraging our members to consider offering a benefit like this to help attract and retain millennials in their individual markets,” said Nichols. “Since so few employers currently offer such benefits, we see this as an opportunity for banks to uniquely position themselves to attract and retain young talent.” 
 
Today’s announcement comes after the association recently doubled its tuition reimbursement benefit for employees. Earlier this year, ABA raised its tuition reimbursement benefit to $10,000 per calendar year for undergraduate tuition and $20,000 per calendar year for graduate tuition.
 
The American Bankers Association is the voice of the nation’s $16 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $12 trillion in deposits and extend more than $8 trillion in loans.
 
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