Reflecting on Evolving Student Loan Benefits for Healthcare Organizations: Modern Education Benefits That Drive Retention & Impact

Highlights from the Webinar by Jason DiLorenzo and Jovica Djurdjevic of SavvyFi

PracticeMatch recently hosted a webinar featuring experts Jason DiLorenzo and Jovica Djurdjevic of SavvyFi, where they discussed evolving student loan benefits that healthcare employers can leverage to attract and retain top talent. With the average medical school graduate facing more than $200,000 in student loan debt, financial stress is a real issue in healthcare. Understanding how to address that stress through innovative benefits is key to staying competitive.

Why Student Loan Benefits Matter in Healthcare Recruitment and Retention

Financial stress can seriously affect job performance, and that’s especially true for physicians. According to recent surveys, about 60% of doctors say financial stress impacts their work. Younger professionals - especially Gen Z and Millennials - are looking for employers who understand their financial concerns. They’re not just looking at salary; they care about benefits that actually make a difference in their lives, like student loan assistance.

Healthcare organizations that offer meaningful student loan benefits are finding it easier to attract and retain younger workers. Offering student loan benefits is no longer a "nice to have" - it’s a proven strategy for improving recruitment outcomes:

72% of Millennials and Gen Z workers would prioritize an employer that offers student loan assistance.

86% of employees aged 22-33 would stay with an organization for five years or longer if student loan support was provided.

Modern Education Benefits: Tuition Reimbursement, Student Loan Repayment, and More

DiLorenzo and Djurdjevic highlighted several education benefit options that healthcare organizations can offer, including tuition reimbursement, student loan repayment, 529 plan savings, and student loan retirement matching.

Tuition reimbursement is a classic benefit where employers contribute up to $5,250 per year on a tax-free basis under Section 127 for job-related education. This cap has been around since the 1980s, but it’s still popular - nearly half of all employers offer some form of tuition reimbursement.

Employers can also make tax-free contributions directly to employees’ student loans under Section 127. It’s a lesser-known benefit, with only about 5% of employers currently offering it, but that number is expected to grow as companies look for ways to stay competitive.

529 plans offer another flexible benefit that goes beyond just college tuition. With SECURE 2.0, employees can use 529 funds for vocational training, apprenticeships, K-12 expenses, and even roll unused funds into a Roth IRA (up to $35,000). This makes the benefit attractive to all employees, whether they have student loans or not.

A more recent innovation is student loan retirement matching. Under SECURE 2.0, employers can match employees’ student loan payments with contributions to their retirement plans. For employees who are financially stressed and unable to contribute to retirement on their own, this can be a game changer.

How SavvyFi Supports Student Loan Benefit Management

SavvyFi’s platform is designed to make these benefits easier for everyone - employers and employees alike. By handling admin tasks like eligibility verification and payment processing directly to loan servicers and 529 plans, SavvyFi takes the heavy lifting off HR’s plate.

SavvyFi also integrates with payroll systems for managing Section 127 contributions and provides enhanced flexibility for 529 Plans. Employees can roll over unused 529 funds into Roth IRAs or use them for K-12 expenses, vocational training, and more. With features like 529 gifting links and cashback rewards that can be applied to student loans or 529 plans, SavvyFi makes these benefits accessible and attractive.

Public Service Loan Forgiveness (PSLF): Updates and Opportunities for Healthcare Employers

PSLF remains a major draw for physicians and healthcare workers employed by nonprofit organizations. After ten years of qualifying full-time employment and payments under an income-driven repayment plan, eligible employees can have substantial portions of their student loans forgiven. For many physicians, that forgiveness can exceed $200,000.

The CARES Act’s temporary pause on student loan payments counted toward PSLF if employment was certified, which provided relief for many borrowers. While some aspects of income-driven repayment plans remain uncertain, PSLF is expected to continue. Employers can make a real difference by helping employees navigate the process, offering resources for one-on-one coaching, and ensuring they certify their employment annually.

Implementing Modern Student Loan Benefits for Better Retention

Modernizing education benefits isn’t just a nice gesture - it’s necessary for attracting and retaining high-quality talent. Platforms like SavvyFi make offering and managing these benefits easy, whether it’s payroll integration, 529 Plans, or student loan repayment assistance. Contact them today to learn how SavvyFi can enhance your recruitment and retention efforts.

Watch the full webinar here: Webinar-on-Demand: Evolving Student Loan Benefits for Healthcare Organizations