U.S. workers are drowning in student loan debt and it may be time for employers to step in to assist them, according to a new report.
Seventy percent of working adults with college debt say their finances are a major source of their stress, compared to 40 percent of those with no college debt, according to surveys by Guardian Life Insurance.
The online surveys also indicated that workers with student loan debt score lower on the insurance company's index for physical, mental and financial well-being than their peers, and that lower scores are directly related to the years people have remaining before they pay off their loans.
The insurance company argued that the survey results are added evidence that employers should be proactive in helping their workers deal with their student debt, with programs such as student loan repayment plans, college tuition rewards, debt management resources and access to financial advisors.
About 44 million people, or 29 percent of the U.S. working population, are carrying some form of student debt, including 75 percent of the millennial generation, according to the report.
"A majority of Americans rely on the workplace for financial security and addressing college debt is one area of focus that is gaining momentum as a viable workplace benefit," said Marc Costantini, executive vice presiden of commercial and government markets at Guardian. "There is a growing interest among employers to differentiate themselves to attract and retain younger talent, and this workplace benefit can help make a positive difference in improving financial wellness among employees."
The company's report was based on two online surveys conducted in the spring—one consisted of responses from 1,700 employee benefits decision-makers and the other fielded responses from 1,800 employees aged 22 or older.
The report noted that total student loan debt in the U.S. has grown to $1.5 trillion, topping auto loans and credit card debt as the largest source of personal debt other than mortgages. The average U.S. college graduate has a loan debt of about $35,000; the average U.S. household, where parents and/or children have student loans, is facing a debt of about $50,000 and a repayment period of about nine years, the report said.
The mounting debt is putting increasing pressure on U.S. families and dissuading many from using loans for their childrens' college education, the survey said.
For example, 70 percent of respondents said they plan to use some retirement savings and investments to pay for their children's college education rather than take out student loans.