Are some of your employees struggling under the burden of student loan debt? In this episode of Transform Your Workplace, Brandon Laws sits down with Naveed Iqbal, co-founder and CEO of Dolr, to discuss how employers can help lift the burden of student loan repayment. According to Naveed, education benefits everyone, so shouldn’t we all share the burden of paying for it?
GUEST AT A GLANCE
Naveed Iqbal is the CEO and co-founder of Dolr, a student loan repayment platform aimed at borrowers, employers, and brands. Naveed is a mathematician with experience in the fields of engineering, physics, risk analysis, web development, and programming.
A QUICK GLIMPSE INTO OUR PODCAST
🔊 Podcast: Transform Your Workplace, sponsored by Xenium HR
🎙️ Host: Brandon Laws
📋 In his own words: “The Transform Your Workplace podcast is your go-to source for the latest workplace trends, big ideas, and time-tested methods straight from the mouths of industry experts and respected thought-leaders.”
LIFTING THE BURDEN
Employers are beginning to recognize the burden that student loans place on the backs of their new employees, those freshly graduated and just starting out in the workforce. The burden of repayment hinders young people from starting families earlier, buying homes, and saving for emergencies or retirement. “It’s impacting almost every aspect of their lives,” guest Naveed Iqbal said.
There’s a need here, but there’s also an opportunity. Employers could be part of the solution by providing innovative benefits for those with educational debt — one such example is Dolr, a loan repayment avenue that not only employers but also borrowers and brands can utilize.
According to this episode’s guest, of those who participated in a survey, approximately 76% of them said that they would stay longer with an employer that offered loan repayment benefits. And when Dolr surveys teams about whether a company should offer student loan benefits — regardless of whether they have loans or not — 98% of the time, people say ‘yes.’ Judging by the numbers, it’s obviously time for change.
PODCAST EPISODE HIGHLIGHTS
Financial Literacy
“We’ve never had a generation that’s as informed about their finances as Gen Z. These people are very aware of how much money they have and what they intend to do with it.
However, there is a lack of knowledge around the specifics. Like, so for instance, the question that you just asked — how much do I put in a 401k? Do I max out my match? Do I pay more toward my student loans? — there’s very little information or knowledge around how to optimize for that.”
Providing the Tools
“I think there are two things that can happen here. We can either continue to overload people with information or we can build tools that help them make those decisions. A combination, I think, is really the answer. I always think about this when you’re buying a house for the first time. You’re so unprepared. Like what do I do? What are the considerations? This broker person is giving me these options. I understand English, but I don’t know what they mean. So there’s data, and then there’s information.
And I think we present a lot of data with not enough information.”
The Student Loan Crisis
“It’s a crisis for two reasons. The first is centered completely around what we just spoke about: information, data, and people not having the understanding of what it means to make payments or to defer payments. One of the biggest issues with student loans is how interest can accrue without people understanding that that’s what’s happening.
And then it gets capitalized, which means it gets added to the amount. […] I don’t think they truly appreciate the level to which it impacts them because it’s not only accruing but when it finishes accruing after deferment, it gets added to your principal.”
Shifting Perspectives
“The way we view our finances has changed. Right? So, for instance, my parents would save for years so that they could take that dream vacation. […] These days, people want to experience life now. And so balancing that combined with their existing obligation creates a lot of financial stress and pressure.”
Sharing the Burden
“We believe that education benefits everyone. And so everybody should play some role in paying for it. Some might argue that we already do that in our taxes. Yeah. Morally, maybe. But if you want to make an impact today, waiting for the government is usually not the best approach. And so everybody has an incentive to participate.”
LEARN MORE
Interested in learning how Dolr can transform your workplace? Check them out here. You can also connect with co-founder and CEO, Naveed Iqbal, on LinkedIn.