Posted on: May 31, 2022, 11:45h.
Last updated on: May 31, 2022, 11:55h.
Workers across a variety of industries struggle to service student loan obligations. But Caesars is easing that burden for its employees.
The largest domestic gaming company by number of venues today announced a new education assistance program for its nearly 50,000 workers, including expanded annual student loan repayment of up to $5,250 per year.
The new program, All-In On Education, includes, student loan debt repayment options, tuition assistance, scholarship opportunities for Team Member’s dependents and a 529 college savings plan,” according to a statement issued by the casino operator.
Caesars, the second-largest operator on the Las Vegas Strip, is also boosting its annual tuition assistance program to $5,250.
Good Timing by Caesars
The announcement of expanded tuition assistance and elevated student loan debt servicing by Caesars comes as the student debt issue remains a focal point of US political discourse. Approximately 46 million Americans have student loan obligations totaling a staggering $1.75 trillion.
Plenty of parents, students, and politicians on the left are clamoring for the Biden Administration to wipe out student debt for federal loan borrowers. The White House recently floated a plan to absolve borrowers of $10,000 in debt. But that idea was derided by those demanding entire obligations be erased. Currently, there is no viable plan to limit college costs, because the party pitching erasing student loans counts college administrators and professors as one of its key voting blocks.
“Among the class of 2020, 55% of bachelor’s degree recipients took out student loans, graduating with an average of $28,400 in federal and private debt. And 14% of parents with students in the class of 2019 — the latest data available — took out an average of $37,200 in federal parent PLUS loans,” according Student Loan Hero.
To put $1.75 trillion into context, it’s well in excess of Google parent Alphabet’s (NASDAQ:GOOG) market capitalization of $1.54 trillion.
Caesars Plan Could Be Good for Nevada
By way of operating nearly 20 gaming venues in Nevada from the Las Vegas Strip to Lake Tahoe to Reno to Laughlin, Caesars is one of the state’s largest non-government employers. And like residents of the other 49 states, Nevadans are struggling with college-related liabilities.
From 2010 to 2020, student loan debt in the state surged a jaw-dropping 155%. Today, the average burden per borrower is $34,000 for a total of $11.5 billion, The Nevada Independent reported earlier this month.
Caesars’ 529 college savings plan, which also includes tax benefits, is likely to be useful to employees because, as of last year, the average 529 plan had less than $29,000 in it — barely enough to cover one of year expenses at many universities.