When college debt follows workers into retirement, employers can help

Young people often consider student loan debt as a necessary—but temporary—burden. They see loans as an investment in their future, and they’re confident they can pay off the debt in a reasonable timeframe, then start building wealth for the future. But it doesn’t always turn out that way. A growing number of people likely never dreamed they’d be paying off loans for decades. And their employers are increasingly interested in helping ease the stress. 

Dire straits

A June 2026 Wall Street Journal article chronicles a collection of borrowers who are still struggling to pay off student loans as they become senior citizens. The article notes that Baby Boomers with federal student loan debt owe an average of about $45,000, but for some of those borrowers, debt from college loans reaches deep into six figures.

As the article notes, when times are lean, borrowers often enter into payment plans that lower their monthly payments, but such plans extend the life of their loans, meaning that sometimes even when borrowers make regular payments, their balances grow because of compounding interest charges.

The resulting stress takes a toll not just on the people in debt, but also on their employers since stressed employees often can’t help but let their financial worries distract them from their work.

A 2024 report from the International Foundation of Employee Benefit Plans says 14% of organizations reported offering some kind of student loan repayment assistance, with another 18% saying they were considering adding a program.