Student debt takes a vacation

Student debt takes a vacation

Cate Chapman Cate Chapman

Cate Chapman

Editor at LinkedIn News

Published Feb 6, 2019
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Paying off student loans is one thing, but giving up vacation days to do it? That’s what insurer UNUM is betting a third of its U.S. workforce will do, when it introduces its new perk next year — paying cash toward debt relief for unused vacation days. UNUM says its employees carry an average $32,000 in outstanding loans and face monthly payments of $350; by giving up a maximum of five vacation days, they could earn about $1,200 in relief a year. And the fact that UNUM employees get at least 28 days of paid time off — almost twice the average for U.S. workers — can only help.


  • Some 4% of large corporations now offer cash payments of up to $250 a month toward student-loan repayment.

Editors’ Picks

  1. View profile for Joshua Fruhlinger, graphic
    Joshua Fruhlinger

    Lead Content Designer @ Meta | Journalist | Previously: Head of Aol Tech | Head of Digital @ TMZ | Founding editor @ Engadget | Features writer for WSJ, Observer, GQ, Playboy

    While offering up debt relief in exchange for not taking time off, Unum employees don't necessarily love the policy. We took a look at the company's anonymous workplace reviews via Glassdoor over time, and it looks like the UNUM workforce may already need.... a vacation. For more insights like this, follow us at Thinknum #workplaceculture #glassdoor

    Student debt relief in exchange for vacations? Unum employees aren't 100% on the policy

    Student debt relief in exchange for vacations? Unum employees aren't 100% on the policy

    media.thinknum.com

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  2. Carmen Dennis commented on this

    View profile for Pedro de Magalhaes Castro, graphic
    Pedro de Magalhaes Castro

    What is everyone's take on this? The company already offers higher than normal PTO but if this is offered to an employee who receives the average PTO, would you consider this to be taking advantage of debt?

    Student Loan Relief or Paid Vacation? These Workers Get a Choice

    Student Loan Relief or Paid Vacation? These Workers Get a Choice

    bloomberg.com

    Carmen Dennis

    Consultant at The Persimmon Group

    Are we fixing the root cause or just a symptom? Employees who rarely use all their PTO are fast tracking to burnout. In an age where most people are in a time famine, how about encouraging employees to use their PTO.

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  3. Margaret L. commented on this

    View profile for Rebecca Greenfield, graphic
    Rebecca Greenfield

    Senior Editor at Bloomberg Business

    A company is offering what it calls a "creative twist" on the student debt benefit: A choice for employees between vacation days of student debt relief. Would you give up five of your paid vacation days for $1200 of debt relief per year?

    Student Loan Relief or Paid Vacation? These Workers Get a Choice

    Student Loan Relief or Paid Vacation? These Workers Get a Choice

    bloomberg.com

    Margaret L.

    Quality Assurance Analyst (Manager)

    This is awesome! As a country, we have to find more ways to reduce student debt. Not doing so, can only enhance negative thinking towards higher education, particularly by ethnic minorities who will continue to weigh putting not themselves or parents in debt versus college education. Unfortunately, many will chose the former. We cant wait for government to come up with all the answers, only some. So kudos to corporate America for tackling student debt by the horn. As a suggestion, maybe companies can look at paying a portion of student debt based on tenure without tapping into vacation. I'll bet that would reduce turnover and boost morale.

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