March 2025

FINANCIAL WELLNESS

Tackling student loan debt

Student loan debt is a significant burden for many Americans, with one in three employees struggling to manage it.1 Nationwide, the total student loan debt has reached $1.75 trillion, with the average borrower owing around $37,853.2 While higher education is often seen as a pathway to closing the wage gap, the financial strain of student loans can make it challenging for many to reach that goal.

The student debt crisis will likely only worsen as the middle ground of affordable options disappears, leaving students to choose between bearing the expenses or forgoing higher education altogether. With tuition rising faster than inflation and financial aid often falling short, student loans remain unavoidable for many, leaving students to cover costs themselves.

30% of students say they are not willing to take on any debt for higher education aspirations.

How we’re helping to alleviate the burden

We recognize the impact that student loan debt has on both individuals and families. To support our clients and their employees as they navigate these student loan debt challenges, we’re introducing a suite of tools and resources.

Later this year, we’ll be launching a comprehensive online portal that will help employees take control of their student loan debt. This program will allow users to:

  • View all of their loans in one place: A central hub for viewing multiple loans and providing a clear overview of balances, interest rates and payments.
  • Compare repayment options: Comparisons of available repayment plans, allowing users to choose the best option for their financial situation.
  • Switch repayment plans: Easily transition between different repayment plans to better fit their needs.
  • Accelerate loan repayment: Set up extra recurring payments to pay down student loan balances.
  • Professional student loan coaching: Sessions with a professional student loan coach who can provide personalized education and guidance on strategies for paying down student loan debt.

We understand that student loan debt is a major concern for many of your employees, and we are committed to providing the resources and support they need to tackle this challenge head-on. As we roll out these new tools and programs, we will continue to keep you updated on our progress and share best practices to help your employees manage their student loans more effectively.

Key takeaways

  • The impact of student loans is pushing many to explore alternative routes for higher education. Learn more in this article.
  • Share articles, seminars, videos and tools available on the Education Center to help employees plan for and manage college expenses.
  • Leverage ready-to-use educational resources focused on the cost of education, found on the Employee Communications Center.

Any new products, services or enhancements are subject to change based solely on Bank of America decision, including not proceeding with a planned offering.

Source for all stats unless otherwise noted: Bank of America Proprietary Market Landscape Insights Study, September 2024. Surveys conducted among general consumers (clients and prospective clients).

1 Federal Reserve, Report on the Economic Well-Being of U.S. Households in 2020, May 2021.

2 Education Data Initiative, Student Loan Debt by Gender, June 20, 2024.