Insurer Offers Employee Benefit Deal: Student Loan Relief for Unused Vacation Time

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Beginning next 12 months, u.S. Personnel at coverage agency unum organization can have a choice: the company will placed cash toward their student loans, if the employee gives up five paid excursion days.

The brand new perk is a innovative twist on an an increasing number of famous advantage. Confronted with the aid of a tight labor market and ever extra indebted candidates, approximately 4 percent of huge agencies surveyed by the society for human resources control say they’re assisting their personnel pay off their loans with cash payments of up to $250 a month.
The deal for unum’s eight,500 employees, even though, is extraordinary: cash for debt in trade for unused vacation days. Each day is worth an worker’s hourly price for an eight-hour day. Mother and father who percentage obligation for a kid’s loans additionally qualify to cash in.

“we idea it turned into a more creative approach,” said carl gagnon, who runs monetary well-being applications on the chattanooga-based totally insurer.

Unum estimates that round 30 percent of its u.S. Team of workers will take gain of the advantage. On average, unum personnel carry $32,000 in debt, with bills of $350 a month, in line with the company’s inner research. How tons people can earn for his or her excursion days relies upon on their profits, but the company estimates a median of about $1,2 hundred a yr.

Jimmy valentine, a 30-year-old employee at unum with $22,000 in debt, stated he plans to cash within the maximum quantity of vacation days each yr until his loans are paid off. Like maximum people, he doesn’t use all of his excursion days, and with the benefit, he can apply a further $1,a hundred and twenty a yr to his debt. “i have to take greater days off,” he stated. “however i retain to paintings to make certain i hold up with the whole lot.”

A recent viral buzzfeed essay pointed to long hours, low wages and excessive debt burdens as a triple albatross for millennials, but gagnon doesn’t suppose the organisation’s posing an unfair desire. Unum employees get as a minimum 28 days of paid day without work, almost double the 15 paid days the common u.S. Worker receives, in keeping with the bureau of exertions statistics.

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