Student loan debt is certainly a major issue and yet it is not often addressed in the hiring process. Some would argue that the overwhelming pressure to start paying back the loan often results in a person making the wrong career decision out of necessity. Companies could do more to alleviate some of that pain by targeting talent out of their specific industry and creating benefits or incentives to help with this burden.
“When you get in debt you become a slave.” - Andrew Jackson
- The effect student loans have on career choices
- How companies might capitalize on debt to help attract talent
Ways in which an individual can reduce the amount of student loan debt:
- Cost reduction programs
- Hidden gems of free money?
What are the inherent challenges related to student loan debt:
- Default on the loan -7 million people are in default
- Limits ability to get a job- ie:govt related
- License suspension -nursing, teachers, lawyers, realtors emergency technicians
- Shackled to what you hate to pay the bills
When people make poor career choices because of necessity it impacts the company that they join. The regret over poor job choice does not only impact the employee but the employer as well. Job regret leads to:
- Low motivation
- Poor employee performance
- Spend work time searching for other employment
How might companies be able to attract the right people by helping to alleviate the student loan debt wound?
- Recruit people from outside industries (look outside the box)- accomplishment based hiring
- Provide an avenue
- Look at the debt as an opportunity to provide performance incentives to offset the debt
Dane Petchul is the Founder and President of Oracle College Planning. With a long history of helping people with their retirement in the finance world, Dane shifted the focus to help families – parents and children – identify the best path to take for a financially responsible college experience..
Dane committed himself to helping families carefully protect their life-savings from soaring college costs while ensuring that a proper financial pathway would be in place so that students wouldn’t be saddled in debt after graduating. Therefore enabling them to make better career decisions.