Question

Discuss the advantages and disadvantages of offering student loan repayment benefits. How can the benefit be improved for the companies offering student loan repayment and for their employees? What changes you would like to see in the practice?

Answer 1

Advantages of offering the benefits in regard to the loans repayment by the student and suggestions are as follows:

If company such as the Bank or any other financial institution who provides loans to the students and while repaying loans to the bank or any other financial institute the benefits given to the students such as the less interest charged to the student or providing other facilities like coupons for shopping, this kind of benefits motivate students to repay the loans to the company on time and in order to improve the offerings to the student the bank company should get ask the feedback from the students through the forms while assigning the loans to the student and also mention some kinds of benefits which the company can give to their customer such as to the students.

Disadvantages of offering the benefits in regard to the loans repayment by the student and suggestions are as follows:

If the banks offer them some kinds of benefits like less interest or shopping bonus or coupons in regard to the repayment of loans by the students, These kinds of offer can be a negative sign for the companies profit's because already company provides loans for the students and they are waiting for their payments and if they provide the benefits then the company could be in the loss if any student fails to pay the payments to the company then that is also a big loss and further if they provide benefits to the students , it can hamper the company's earnings.

The change that should be adopted by the company is as follows:

The loan providing company should give loans only to the students who have the capacity or to whom who is serious about their studies and otherwise the company should not give loans to the students who just applied for the loans, there should be a proper verification of the student's goals and intentions of paying the amount of loan taken and they should continue providing the benefits to the students but should be verify first to have complete security on the funds given to the student as loan for studies.