Graduating can be cause for celebration (you survived countless essays, a few all-nighters, and those pesky required math classes), but it can also spark fear as your student loan bills loom large. If you haven’t found a job by graduation, your anxiety could kick into overdrive.
Kristen P. Lindgren, a psychologist and researcher, explained why student loan-debt dread is no joke—and why you’re not alone if you feel this way: “US young adults face the largest student loan burden in history, rising income inequality, and economic uncertainty.” That debt burden exceeds the total debt owed for auto loans or credit cards in the United States and is second only to mortgage debt.
If you’re staring down what feels like a mountain of student loan debt, you can’t wait for the government to reform federal loan practices or schools to curb their tuition hikes. You need a job, preferably one with student loan repayment assistance.
Why does student loan debt feel so bad?
Maybe you’ve heard about good debt and bad debt. Good debt increases your net worth or has future value. A mortgage and student loan debt are considered good debt. Bad debt, on the other hand, doesn’t offer any long-term benefits and might cost you a lot more, such as a runaway credit card or a payday loan.
Why is it that even though student loans are considered good debt, they often feel so bad? It’s a mixed bag, and it can depend on your personal situation. Here are a few reasons student loans can have so much emotional baggage:
Regret: Many people sign up for student loans right out of high school. Looking back, you could feel as if you didn’t understand what you were getting yourself into and now it’s too late. Shame: In addition to interest, debt can carry stigma. You might not feel as if you can talk with anyone about it, which can feel like a heavy and lonely burden. Disparity: Research shows that women and Black Americans struggle more to afford their student loan payments because of long-standing systemic inequalities in pay and hiring, which could make you feel angry and powerless. Feeling stuck: It can feel as if your payments aren’t doing anything but paying the interest, which continues to accumulate. You could feel as if you’re not making any progress. Strain: Whether real or perceived, experiencing financial strain could lead to a higher rate of mental-health problems. Intangible: Unlike a house or a car, your student loan debt is abstract. A college education doesn’t guarantee future value even if the odds are pretty good. That can leave you feeling as if you made a bad choice if you’re struggling to find a job or make enough money to pay down your loans.
But worrying and stressing about student loan debt doesn’t have to dictate your life if you find an employer that offers student debt relief as part of their employee benefits.
Why should you consider a job that offers student loan assistance benefits?
Maybe you think, “I just need to get a good-paying job, and I’ll be fine.” That’s one route. It’s all about your own sweat equity and moving up the ladder.
At Fidelity, we’re all for working hard, but we’re also for working smart. That means getting money to work for you instead of you working for it.
Here’s why working at an employer that offers student loan contributions is the smarter approach:
You’ll pay off your student loan debt faster than you could on your own. That means you’ll pay less interest in the end and chip away at the principal sooner. You won’t just keep up with the interest, you’ll get ahead of it, saving money you can spend on something else, such as a down payment on a house or taking that dream vacation. You’ll reduce any emotional baggage because you’ll have someone by your side, supporting you and providing much-needed mental and emotional relief while also providing student debt relief.
As good as they are for employees, direct student loan payments remain a rare employee benefit with only 10% of employers offering them in 2023. You might need to search for a while before finding one of these generous employers—or you could apply to Fidelity.
Why should you work for Fidelity if you have student loan debt?
As one of the few employers that provide student loan repayment assistance, Fidelity’s benefit stands out even more. Here’s why:
This Fidelity benefit is available to both full-time (30–40 hours per week) and part-time employees (20–30 hours per week). Other companies may offer this kind of benefit only for full-time employees. Fidelity offers up to $15,000 in repayment assistance for full-time associates and $7,500 for part-time associates. Other firms may offer only one-third to half that. Fidelity helps to repay student loans from any federal or private US-based service provider for any undergraduate or graduate degree taken out in your name to pay for your education. Other firms may help you pay only for loans related to your current role. Fidelity contributes to your student loan debt even when the loan is deferred or there’s a pause in repayments, helping you pay down the principal. On top of student loan-repayment assistance, Fidelity gives you access to Fidelity’s Student Debt Tool, which helps you identify cost-effective repayment strategies (such as refinancing), plus online student loan repayment education and insight. These services help you feel empowered and on the path to achieving your financial goals.
What do employees say about Fidelity’s student loan debt benefits?
The best endorsements are from our associates. Here’s what they have to say about how this benefit has made a positive difference in their lives:
“It makes me feel good to see that change is happening on my student loans. The fact that it’s not coming from my pocket is even better. It’s just so beneficial, especially if you’re recently out of college or haven’t paid down much.” —Jaclyn, High-Net-Worth Associate
“It’s empowering to know that there’s a company that supports me with my student loan debt.” —Brianna, Initiative Test Lead
“This assistance helps me afford my education and use my savings to afford other important needs. Fidelity encourages me to take advantage of education.” —Ana, Brokerage Client Experience Operations Representative
“You’re not worried about repaying your student loans, and that makes coming to work about coming to work and not about managing life.” —Emily Victoria, Principal Architect
“The fact that Fidelity adds a little extra on top of what I pay on my student loans makes more of an impact. It’s not just that you have this benefit, it’s that it’s very easy to use and the people helping you use it are helpful as well.” —Ryan, Central Relationship Manager
Think you’re ready to “Find your Fidelity” and pay down your student loan debt faster?
*The student-loan contribution is available to associates who are in certain roles and who meet performance requirements.
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