Breaking Down Barriers: How Loan Assistance Can Advance DEI in Healthcare

Diversity, equity, and inclusion (DEI) are critical priorities for healthcare organizations striving to create a more representative and equitable workforce. However, student debt remains a major barrier to achieving these goals—particularly for underrepresented groups in healthcare.

As a Head of Rewards and Benefits, you play a key role in developing strategies that support recruitment, retention, and advancement for diverse healthcare professionals. Offering student loan repayment assistance is one powerful way to reduce financial burdens, create equitable career pathways, and reinforce your organization’s commitment to DEI.

The Student Debt Gap in Healthcare

Research consistently shows that student debt disproportionately impacts Black, Hispanic, and other underrepresented healthcare professionals. According to the Association of American Medical Colleges (AAMC):

• Black medical school graduates carry $30,000 more in debt on average than their white counterparts.
• Hispanic and first-generation healthcare workers are more likely to take on higher loan balances due to limited family wealth and financial support.
• High debt burdens often push underrepresented groups away from lower-paying but critical healthcare roles, such as primary care and public health.

Without targeted financial relief, these disparities can limit career advancement opportunities, deepen workforce shortages in underserved areas, and hinder efforts to build a more inclusive healthcare system.

How Loan Assistance Advances DEI Goals

By incorporating student loan repayment assistance (SLRA) programs into your benefits strategy, healthcare organizations can:

1. Remove Financial Barriers to Entry

High student debt discourages diverse candidates from pursuing or remaining in healthcare careers. Offering employer-sponsored loan repayment benefits can make these career paths more accessible.

2. Improve Retention of Underrepresented Professionals

Many healthcare workers leave non-profit and public health roles due to financial pressure. Providing student loan relief helps retain diverse talent—especially in mission-driven positions that serve vulnerable populations.

3. Strengthen Recruitment and Employer Branding

A commitment to student debt assistance signals a strong DEI commitment. Highlighting these benefits in recruitment efforts can attract more diverse candidates and differentiate your organization as an inclusive employer of choice.

4. Support Career Advancement and Leadership Development

Debt often delays professional growth, as employees may prioritize higher-paying roles over leadership development or continuing education. Reducing student loan burdens allows diverse professionals to focus on career progression and leadership opportunities.

Integrating Loan Assistance into Your DEI Strategy

To maximize impact, consider these steps:

• Leverage Tax-Free SLRA Programs – The CARES Act allows employers to contribute up to $5,250 per employee per year tax-free toward student loan repayment, making this a cost-effective DEI investment.
• Promote PSLF Awareness – Many healthcare workers qualify for Public Service Loan Forgiveness (PSLF) but need guidance to navigate the process. Providing PSLF education and support can amplify your financial wellness efforts.
• Target Assistance to High-Need Roles – Focus student loan relief on critical shortage areas, such as nursing, primary care, and behavioral health, where diverse representation is especially needed.

Moving Forward: A Smarter Approach to DEI in Healthcare

Addressing student debt is more than a financial benefit—it’s a key strategy for advancing equity in healthcare. By integrating student loan assistance into your total rewards program, your organization can break down financial barriers, retain diverse talent, and build a stronger, more inclusive workforce.

📢 Want to explore how student loan relief can strengthen your DEI efforts? PeopleJoy helps healthcare organizations design tailored loan assistance programs that drive impact. Contact us today to learn more!