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Stride Fundinghas announced a suite of initiatives to support employer-sponsored student loan programs.
What Happened?The transformative model enables employers to sponsor education for students at high-quality educational programs (degree and non-degree) nationwide to reduce the debt burden. At the same time, this model tackles critical workforce shortagesparticularly in sectors like healthcare, manufacturing, and logisticsand incentivizes talent retention at low to no upfront cost to employers.
Stride Funding has launched employer-sponsored loan programs to address labor shortages and power economic mobility while tackling the student debt crisis._
Employer-sponsored student loan programs sponsor both degree and non-degreed studentsat unprecedented levels.
The initiative targets explicitly critical workforce shortages, especially in sectors likehealthcareandsemiconductors.
Why Does It Matter?The model incentivizes talent retention at a low to no upfront cost for employers, reducing the debt burden for students and securing full-time positions before they graduate.
The U.S. is currently facing ~2x open roles to unemployed individuals
There is a projected shortage of up to 3.2 million professionals in healthcare by 2026 amplified by an aging population and COVID-19. (Not-so-fun fact: usage of travel nurses increased 258% during Covid!)
In semiconductors, 67k technicians, computer scientists, and engineers will be in short supply by 2030. Given all the geopolitical issues, you can imagine the US focus on resilience onshore vs. cost optimization.
This program capitalizes on recent regulatory events, including the CHIPS Act, the Inflation Reduction Act, and the CARES Act.
Average student debt for a bachelors degree is $32,000-$59,000can take 20+ years to pay offand this program would eliminate/cut that debt in half in ~ three years after graduation.Loading… Loading…
For employers, participation in Strides programs allows them to access talent before their competitors and incentivizes retention post-hire. Stride bridges the gap between education and career, addressing employer pain points in acquisition, retention, and engagement.
This proactive approach reduces recruiting costs, turnover expenses, and reliance on sign-on bonuses while building pools of net new talent. And the results are powerfulin the case of 500 skilled trade employees on Strides platform, first-year turnover dropped from national averages of ~83% to 5% with employer sponsorship.
We are tackling a massive problemwe directly address labor market inefficiencies in critical industries like healthcare, manufacturing, and logistics that power the U.S. economy, said Tess Michaels, CEO and Founder of Stride Funding.
Its rapidly expanding network of employers across large and fast-growing industries, a few of which include Warby Parker, Brickyard Healthcare, MyEyeDr., and a number of the nations largest logistics
and manufacturing companies help position Stride at the forefront of reshaping talent acquisition and retention.
By actively participating in reshaping talent acquisition and retention, we are not just addressing immediate workforce needs but also contributing to the long-term sustainability of the healthcare industry, Brad Jokovich, Senior Vice President of Human Resources at Brickyard Healthcare, told Benzinga.
The launch of Strides employer-sponsored loan programs comes at a crucial time when there are many more job openings in the U.S. economy than unemployed people.
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