The student loan reduction program took effect July 1 and will make Memphis the first city in the U.S. to offer this benefit, notes Tuition.io, the administrator of the plan. "As the first major American city to embrace student loan assistance, Memphis is proving itself to be a leader in understanding and catering to the needs of today's workers," says Scott Thompson, CEO of Tuition.io. "Their initiation of this program should be a clarion call for other municipalities to follow suit."
Eligible workers will receive $50 a month from the city to be used towards paying down principal on the loans. An employee must be full-time and have worked at least a year to qualify.
"We are proud to be the first municipality in the country to offer this kind of student debt assistance to our workforce," says Alex Smith, chief human resources officer for the city. "We view this as an important investment in our employees."
A number of private-sector employers already offer similar benefits.