3 steps to improve student loan relief after SCOTUS ruling

President Biden's student loan forgiveness program would have canceled up to $20,000 of student loan debt until it was struck down by the U.S. Supreme Court. It's estimated that nearly 43 million borrowers would have been eligible for student loan forgiveness. Given the far-reaching impact of this ruling, it's important for employers and their advisers to understand the implications for working Americans. 

While the administration has since introduced an income-driven student loan repayment plan called SAVE, HR and benefit professionals can expect an increased level of benefits-related inquiries in the coming months as new financial pressures mount. Student loan interest resumed on September 1 and payments will begin in October after a three-year pause due to the COVID-19 pandemic.

Read more: What the Supreme Court's ruling on student loan forgiveness means for employees

Employers have a new opportunity to modernize benefits offerings with the help of their advisers to better meet the ever-changing challenges faced by today's workers. Here are three steps to consider in light of the SCOTUS student loan relief decision.

1. Explore tuition and loan reimbursement programs
Following this decision, organizations should think about what their own requirements are for employment. A recent survey found that nearly two-thirds (62%) of employers still require a degree for entry-level jobs. If your client requires higher education, then it should be used as an opportunity to enhance the benefits to align with skills and educational requirements that are most valued in the company.

Given the high cost of education and mounting student loan debt, organizations should consider offering an employer-sponsored education reimbursement program such as tuition reimbursement accounts and student loan repayment benefits. These programs can help ease the financial burden of continued and previous education. 

Data from the HSA Bank Health & Wealth Index shows that most Gen-Z (61%) and millennials (51%) are more likely to change employers due to improved benefits. Be sure to have your clients conduct an inventory to learn if any of their existing benefits are being underused and if there is room to shift budgets from those programs to support other initiatives. Remaining flexible will enable organizations to be better equipped to meet the changing needs of their workforce.

2. Offer customizable benefits for mental health and financial planning
It's critical to ensure that employee mental health is being supported. It's even something job seekers are searching for. About half (48%) of Gen-Z and millennials report that mental health benefits make more of an impact when researching new employers. Further, a survey by the American Psychological Association found that less than a third (30%) reported that their employer offers health insurance with coverage for mental health.

Read more: Student loan payments restart in October. Are employees ready?

Benefits should be created to enhance and support teams. With more than half of Americans reporting that money worries erode their mental health, employers have a duty to prioritize programs to address these concerns. This can be done by increasing annual matching contributions for FSAs and HSAs during times of increased uncertainty to help support eligible mental health expenses.

Lifestyle spending accounts, or LSAs, are another up-and-coming program that allows companies to offer flexibility in how their benefits are used. These are post-tax, employer-funded accounts that can be used to help employees save on common expenses like gym memberships, personal or family counseling and even financial planning courses. These accounts allow organizations to provide flexibility in their overall offerings but also react quickly to timely matters that impact the well-being of employees.

3. Consult brokers and vendors for additional support
At the core of any benefits package is a combination of brokers and service providers helping employer clients provide a unique offering to their employees. Their expertise will help explain the ins and outs of various insurance plans, FSA/HSA reimbursement and even mental health offerings.

Read more: How advisers can help parents cash in on student loan relief

Now is the time to reconnect with your employer clients to understand if they're underutilizing existing offerings. It's also helpful to understand how other companies are reacting to the SCOTUS ruling and take the necessary action to remain competitive in a tight labor market. 

In addition, be sure to offer webinars, coaching and temporary support for significant moments in time, help clients understand all the options available to them and even uncover new perks they may not have been aware of.

While many organizations only review benefits once a year, assessing the need for student loan assistance year round will help them remain flexible during times of economic change and crisis. As more employees express concerns about student loan repayment, it's important for companies to seek ways to enhance their offerings when they can. 

The SCOTUS ruling offers a unique opportunity for HR teams to define with the help of their advisers how the workforce will prioritize their mental health and financial well-being. As companies look to retain and attract new talent, student loans will likely be top of mind – creating an opportunity for organizations to differentiate themselves with new benefits offerings.