Some credit unions may soon begin repaying some of theiremployees’ student loans in an effort to attract and retaintalent.

Earlier this month, Beaverton, Oregon-based employee benefitsconsulting firm CU Benefits Alliance launched CU Student LoanRepayment Benefit — a program through which CU employers contributedollars toward employees’ student loan payments. The move is aimedat helping credit unions capitalize on a growing trend in employee benefits, CEO JohnHarris told CU Times.

“Normally, [credit unions] are going to say if you contribute$100, we will match up to $50 or $100 or something like that. Bestpractice ranges anywhere from $50 to $200 of contribution by theemployer,” he noted. Employees with $30,000 in student debt at 6%interest and 10-year payoff term could save $11,670 in interest ata $100 monthly contribution level, according to thecompany.

The employer contributions are post-tax, Harris said, but a billintroduced in Congress this year could make those benefitspre-tax.

To be sure, help with student loan repayment is still a rarebenefit — only 4% of employers offered it in 2017 and 2016, thoughthe number has ticked up from 3% in 2015, according to data fromthe Society for Human Resource Management. Harris estimated thatless than 1% of credit unions offer the benefit right now.

Nonetheless, credit unions and employers across the country maysoon feel pressure to add student loan repayment help to their benefits packages.

According to a 2013 survey by college financing nonprofitAmerican Student Assistance, 83% of respondents said that, allother things being equal, if an employer offered assistance withstudent loan repayment, it would be the deciding factor or haveconsiderable impact on their choice to take that job.

“If you think about this, you have life insurance, group life,group disability through your employer,” Harris noted. “Mostemployees never see that benefit ever. Most people don't die whenthey're at their employer. Most people don't have disability attheir employer. They never get those benefits. This benefit, theysee it every month.”

Though millennials are a prime target, Harris said they’re notthe only demographic that may value help paying down studentloans.

“What we're finding is parents of students and grandparents ofstudents are getting loans so that their kid doesn't have debt whenthey graduate,” he explained. “Now the parents have the debt. Notonly are you providing a benefit that would help those 25-year-oldscoming into your workforce, but you're also providing the benefitto those 40-year-olds who have kids coming into college or out ofcollege.”

Harris expects around 100 credit unions to start offeringstudent loan repayment benefits in the next 12 months. In fiveyears, he expects as many as half of all employers to offerit.

“I think as an employer, we need to be creative because if we'reno different than the bank or the other credit union down thestreet — we always think we have a better culture, better whatever, better service package — ifwe don't get creative with what we're offering to work for us, thenI think we're going to have a hard time competing for the best talent,” he warned.