The rise of student loan debt has impacted not just a single generation, but many of them. College education used to be a concept synonymous with better jobs, higher wages, and a clearer future. Yet, the exploding and exploitative rise of student loan debt has fundamentally crippled a generation, leaving them bankrupt and lacking the kind of investments that they need to survive in their future.
John Hailer, a former CEO of Natixis, took to Boss Magazine to detail the important work he has done at Natixis as well as at Diffractive Managers Group as their present CEO.
Rising Tide of Student Loan Leaves Workers Stranded
Crushing student debt has become a topic not just at universities, but at the highest levels of government as well. As of 2022, nearly half of all United States students will leave college with enormous swathes of student loan debt, a form of debt ranking second only to their housing and mortgages. Of this debt, private and federal loans total more than $1.75 million, equating to roughly $30k per borrower. Of borrowers, individuals aged 25 to 34 currently owe more than $500 billion.
As student loan debt continues to grow, former exec at Natixis John Hailer is certain that companies need to step up to tackle some of the problems themselves. To live and breathe by these words, John Hailer helped to engineer a program at Natixis that led directly to improved morale, educated employees, and a reduction in overall student loans.
According to a study published by Bankrate, nearly 20% of Gen Z and Millennial responders were reportedly delaying their marriage and family raising obligations due to student loan debt. Nearly 60% of respondents announced that their student loan obligations had impacted important financial choices.
As the former business leader at Natixis John Hailer helped to introduce the student loan repayment benefit for employees working full-time while operating at the company for at least five years. Individuals that met qualifications saw nearly $10,000 in loans forgiven by the company.
Hailer said of the company’s decision, “It was huge. The feedback we received was well beyond our expectations.”
As a result, many other businesses were spurred into action as they quickly adopted their own loan repayment programs, thus setting the stage for industry adoption and normalization. Hailer said of this notable achievement, “We knew that leading by example was the right thing to do.”
Looking to the Future and the Past
The COVID-19 pandemic fundamentally impacted the world in ways that we wouldn’t understand for decades. However, at this time, we understand that the pandemic led the United States government to pause student loan payments for the first time, setting the stage for discussion surrounding student loan forgiveness.
During the freezing process, the Biden Administration would introduce the Student Debt Relief Plan to help borrowers transition back to their payments while receiving forgiven loans of up to $20,000. Additionally, the United States Department of Education is tailoring debt relief to middle and low-income households.