How Tuition Reimbursement Programs and Secure Act 2.0 Help Employees Plan for College

College tuition costs keep rising, and parents are feeling the pressure. For many employees, planning for their children’s education competes with saving for retirement and paying down debt. Forward-thinking companies are stepping in with college financial planning benefits for employees that not only ease this burden but also strengthen recruitment, retention, and overall workforce financial wellness.

The urgency is greater than ever: recent federal changes to Parent PLUS loans limit borrowing and repayment flexibility, making early savings and strategic planning critical. Employers who help employees navigate these changes with solutions like tuition reimbursement programs for employees and Secure Act 2.0 student loan benefits will stand out as trusted partners in their workforce’s financial future.

Why College Financial Planning Benefits Matter

Reduce Financial Stress and Improve Productivity

Employees juggling rising tuition costs often face significant anxiety, which impacts engagement and job performance. Offering employee financial wellness programs with tuition assistance demonstrates a commitment to whole-family well-being.

Attract and Retain Top Talent

Modern workers—especially mid-career professionals and young parents—value holistic benefits. A strong tuition reimbursement benefit for employees with children in college can be the differentiator that helps your organization attract and retain high-performing talent.

Support Long-Term Financial Wellness

Integrating college savings planning with student loan repayment benefits creates a comprehensive financial wellness strategy that helps employees save smarter while avoiding unnecessary debt.

Employer-Driven College Planning Benefits That Work

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The New Reality: Parent PLUS Loan Changes

Federal reforms have reshaped the Parent PLUS loan landscape:

• Annual and Lifetime Caps: Beginning July 2025, borrowing will be capped at $20,000 per year per child with a lifetime limit of $65,000 per student.
• Loss of Income-Driven Repayment (IDR): Starting July 1, 2026, new Parent PLUS loans will no longer qualify for IDR plans, forcing parents into standard repayment schedules.
• Deadline-Sensitive Consolidation: Current borrowers may preserve IDR eligibility only if they consolidate before upcoming federal deadlines.

These changes—dubbed the “Parent PLUS cliff”—make early financial planning more important than ever. Employers offering tuition reimbursement for working parents and education around Secure Act 2.0 student loan repayment matching can help employees bridge the gap.

Why Employers Should Act Now

1. Educate Employees on New Rules
   Host webinars and provide resources on Parent PLUS changes, tuition reimbursement, and Secure Act 2.0 benefits.
2. Implement Tuition Reimbursement Programs
   Offering a company-sponsored tuition reimbursement program not only reduces education costs but also strengthens employee loyalty.
3. Highlight Secure Act 2.0 Benefits
   Ensure employees know how retirement plan matches on student loan payments and 529-to-Roth rollovers can support long-term goals.
4. Provide One-on-One Financial Coaching
   Help employees understand their options and avoid costly mistakes with personalized support.
5. Offer Tuition Planning Tools
   Give employees access to college cost calculators and financial planning resources to make smarter borrowing and saving decisions.

Implementation Roadmap for HR and Benefits Leaders

1. Audit Current Benefits Programs – Identify where college planning, tuition reimbursement, and student loan assistance can fit.
2. Integrate Tuition Reimbursement – Align reimbursement policies with employee development and family education needs.
3. Promote Secure Act 2.0 Student Loan Benefits – Clearly communicate these new rules as part of your total rewards strategy.
4. Pilot and Gather Feedback – Launch with a small group, measure utilization, and adjust based on employee feedback.
5. Scale and Communicate Broadly – Use onboarding, benefits fairs, and intranet campaigns to build awareness.
6. Track ROI Metrics – Monitor participation, employee retention, and reductions in Parent PLUS loan reliance.

Turn College Planning Into a Competitive Advantage

With tuition costs rising and Parent PLUS loans becoming more restrictive, now is the time for employers to lead with innovative benefits. By offering tuition reimbursement programs for employees and leveraging Secure Act 2.0 student loan and retirement benefits, organizations can help their workforce save smarter, borrow less, and build financial resilience.

PeopleJoy specializes in employee financial wellness and can help your organization design a college planning benefit that drives retention, recruitment, and financial well-being.

Contact us today to explore how we can help you implement these powerful employee financial wellness benefits.