As the dust settles after the recent presidential election, there’s one issue that remains top of mind for millions of Americans: student loan debt. This burden is having an outsized impact on financial well-being for two generations—Millennials and Gen Z—who are navigating significant uncertainty around the future of student loan forgiveness programs, Income-Driven Repayment (IDR) plans, and federal support.

While discussions around student loan debt often focus on Millennials and Gen Z, it’s easy to overlook that Gen X (those born between 1965 and 1980) are also significantly impacted. In fact, this generation is facing unique financial challenges that make them particularly vulnerable to changes in federal policies following elections. Here’s how the election results and evolving policies can affect Gen X when it comes to financial wellness and student loans.

In this blog, we’ll explore how student loan debt is affecting the financial wellness of today’s workforce, highlight real-life examples, and discuss how employer-sponsored programs like Thrive Employer Contribution and Thrive Student Loan Advisors (Silver Lion) and can provide much-needed relief during this period of transition.

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Student Loan Debt & Election Uncertainty: What's at Stake?

Recent presidential elections have reignited discussions about student loan debt relief, creating a wave of anxiety and uncertainty among borrowers. Policies around loan forgiveness, IDR plans, and the Public Service Loan Forgiveness (PSLF) program have been in flux, making it challenging for borrowers to plan their financial futures.

According to a survey by Pew Research, nearly 60% of student loan borrowers are uncertain about the future of their repayment options given the political landscape. As new leadership takes office, changes to these programs could significantly impact how employees manage their loans—and their overall financial well-being.

IRL Student Loan Borrower Mark T., a Public-School teacher

Mark, a 29-year-old public school teacher, has been counting on the PSLF program to forgive his remaining student loan balance after ten years of payments. With recent election uncertainty casting doubt on the stability of his student loan debt programs, he’s worried that the rules might change before he reaches eligibility. “It’s hard to plan for the future when I don’t know if my loan forgiveness will actually happen,” he shares.

Student Loan Debt & Election Uncertainty: The Outsized Impact on Financial Well-Being

The uncertainty around the election and student loan forgiveness is just one part of the equation. For both Millennials and Gen Z, student loan debt is a major factor in delaying important life decisions like buying a home, starting a family, or saving for retirement.

Research by PwC’s 2023 Financial Wellness Survey found that 68% of employees with student debt report that it’s negatively impacting their ability to reach financial goals. This isn’t just a financial issue—it’s affecting mental health, job satisfaction, and productivity.

How Millennials and Gen Z Are Affected:

• Millennials, many of whom are now in their 30s and 40s, are still struggling to pay down student loans while trying to build a stable financial foundation for their families.
• Gen Z, just starting their careers, are taking on similar debt loads with added uncertainty about how the political climate will impact their repayment options.

Real-Life Example: Sarah, a Millennial Manager

Sarah, a 35-year-old manager, is juggling a mortgage, daycare costs, and $75,000 in student loans. The recent election results have left her wondering if the proposed changes to IDR plans will actually take effect or if she’ll need to find other ways to manage her monthly payments. “I just want to feel secure,” she says, “but with all these changes, it’s hard to know what to prioritize.”

Gen X is often referred to as the "forgotten generation" in student loan discussions, yet many of them are still carrying significant student debt.

According to a 2023 Federal Reserve report, nearly 20% of student loan borrowers are aged 45 and older, with some still paying off loans taken out decades ago or loans they co-signed for their children’s education.

Key Stats:

• Federal Student Aid data reveals that borrowers aged 45-54 owe an average of $50,000 in student loans.
• Many Gen Xers took out loans to go back to school during the Great Recession or to fund their children's education.

Co-Signing and Parent PLUS Loans

One major source of debt for Gen X is Parent PLUS Loans. This generation often finds themselves sandwiched between supporting their aging parents and helping their children afford college. Many have taken out Parent PLUS loans or co-signed private loans, effectively doubling their financial burden. As a result, Gen X faces unique challenges:

• Rising Interest Rates: Election results can impact interest rates, making it harder for Gen X borrowers to refinance or reduce their loan payments.
• Changes to Loan Forgiveness Programs: Proposed changes to the Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) plans can leave Gen X borrowers uncertain about their eligibility, especially those who took on Parent PLUS loans to help their children.

Real-Life Example: Susan, a 52-Year-Old Accountant

Susan co-signed student loans for her two children, totaling over $70,000, while still paying off her own $35,000 in student debt from going back to school. With recent discussions around changes to federal loan forgiveness programs, she worries that policy shifts could mean longer repayment periods or higher monthly payments. "I’m supposed to be saving for retirement, but it feels impossible when I’m still paying off both my debt and my children’s."

Student Loan Debt & Election Uncertainty: How Employers Can Step-In to Support Financial Wellness

Given the current uncertainty, many employees are looking to their employers for support. This is where employer-sponsored programs like Thrive can play a crucial role. By offering flexible financial benefits, employers can alleviate some of the stress associated with student loan debt and help employees achieve greater financial security.

How Thrive Employer Contribution Programs Work:

Thrive allows employers to contribute directly to employees’ financial goals. Rather than traditional retirement-only match programs, Thrive gives employees the flexibility to apply contributions where they need it most:

• Student Loan Repayment: Employees can use employer contributions to pay down their student loans faster, helping them reduce debt and interest over time.
• 529 College Savings: Employees can divert contributions toward saving for their children's education, reducing future debt for the next generation.
• Emergency Savings Accounts: Contributions can also be directed to building a safety net, reducing financial stress and improving overall well-being.

Real-Life Success Story: Thrive in Action

One company, a healthcare organization, recently implemented Thrive to support its employees dealing with student debt. By allowing employees to redirect employer contributions toward student loans, they saw increased engagement and retention among their workforce, especially among Millennials who were struggling to manage debt while planning for their families.

Case Study: Helping Employees Like Mark and Sarah

Mark, the public service worker mentioned earlier, was able to use his employer’s Thrive program to accelerate his student loan payments, reducing his anxiety about potential policy changes. Sarah, on the other hand, redirected her contributions to an emergency fund, giving her peace of mind amid the uncertainty.

The Benefits of Offering Financial Wellness Support

For employers, offering flexible financial wellness programs isn’t just a nice-to-have—it’s a strategic move that can attract and retain top talent. As more employees grapple with the financial uncertainty surrounding student loans, providing support can differentiate your company in a competitive job market.

Key Benefits of Thrive:

• Boost Retention: Employees who feel supported are more likely to stay with their employer.
• Increase Productivity: Reducing financial stress can lead to higher engagement and productivity.
• Improve Employee Well-Being: Supporting employees’ financial goals helps create a more satisfied and loyal workforce.

Navigating Uncertainty Together

As we move through another period of political change, employees are feeling the pressure of managing student loan debt with limited clarity on what lies ahead. Employers have an opportunity to step up and provide meaningful support through flexible financial wellness programs like Thrive.

By investing in your employees’ financial well-being, you’re not just helping them navigate current challenges—you’re building a stronger, more resilient workforce for the future.

If you’re interested in learning more about how Thrive can benefit your organization, please reach out. Together, we can help your employees achieve greater financial peace of mind in these uncertain times.