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Memphis To Help Employees Pay Off Student Loans

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Memphis has become the first major U.S. city to launch a student loan reduction program for all full-time city workers to help retire their student debt faster.

Last week, the City of Memphis announced the rollout of the Student Loan Reduction Program to help employees who are burdened by student loans. The city added that it is dedicated to building and retaining an engaged workforce.

With total student debt outstanding in the U.S. exceeding $1.4 trillion, student loan debt is a widespread issue among the workforce. Young workers must pay off these loans before they can start thinking about their financial future.

Memphis is a city with a shrinking population. In 2016, student loan debt in Memphis grew by nearly five percent, compared with slightly more than three percent growth nationally.

Beginning July 1, eligible Memphis city workers will receive monthly contributions of $50. The contributions will go towards principal repayment of their student loans. The program is being administered by Tuition.io, a platform for employee student loan contributions.

"We are proud to be the first municipality in the country to offer this kind of student debt assistance to our workforce. We view this as an important investment in our employees," said Alex Smith, City of Memphis Chief Human Resources Officer.

To qualify for the program, an employee must be an active, full-time city employee for at least 12 months. Memphis is utilizing Tuition.io's technology to coordinate payments directly to the employees' student loan service providers.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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