Posted on: Wednesday August 06, 2025
It’s the summer of 2025 and thousands of new university graduates are hitting the employment market, armed with youthful enthusiasm and a will to work. But the majority will also be saddled with debt.
To gain an insight into this challenge, we spoke with two of our experts at opposite ends of the generational divide: reward consultant Spencer Hughes graduated from Swansea University in 2018 and Business Development Director Andrew Walker studied at Aston University before student loans were introduced. We asked them how companies, and HR in particular, can help these younger workers?
What do you feel are the practical and psychological impacts of a student loan?
Spencer: Happily, I’m a little bit down the track now and enjoying a really good job, but my student debt felt more of a burden when I started out in work. I was having to pay it while also taking care of other new things like paying my own rent, council tax, and running a car. I remember feeling quite concerned. As my career has progressed, the amount I pay back each month has increased and generally I think less about my debt than I used to. Looking at it objectively, you could say that career and pay progression have eased the impact for me practically and mentally.
How much can the company help you with managing the debt?
Spencer: The debt is obviously mine and ultimately my responsibility but being employed has its benefits. A friend chose to be self-employed and without the structure and support of a company and PAYE system, he needs to remember to set aside an amount to pay his student loan each month, which makes it more of a constant nag for him. When my wage is paid, I just see the loan repayment like a tax deducted from what I take home, so I probably feel less of an impact and financial burden. I also know that if I were ever out of work the payments would stop unless I’d earned a lot in that year, so I feel less exposure to the debt.
If I still owe something after 30 years it gets wiped, and I guess for some people that could act as a disincentive to get on and earn more and instead take a less pressurized job that pays less. I’m not sure many young people are out there making that conscious decision though.
How do companies show young workers they are taking this issue seriously?
Andrew: I feel for our young workers hitting a competitive employment market with this added pressure on top of a tough housing market, but it’s worth pointing out that these things are also relative. When I left university, I didn’t have student debt, but my first mortgage rate was 12% and rose to 15%. We also sold that house for less than we paid for it. That made me more transactional in terms of looking for roles that would simply pay me more, which wasn’t necessarily helpful either.
These days, employers need to adjust the way they structure their Employee Value Proposition and show how much more they can offer in terms of flexible benefits on top of simple pay. Some young people may be happy to earn a bit less – and debt repayment might be only one reason for that – but they might really value the ability to buy and sell holidays, take gym membership or other wellbeing options, do salary sacrifice on tech, work from home, or invest into ESG initiatives. There are more strings to a company’s bow these days.
How can companies help graduates struggling with the stress of a loan?
Andrew: That is an important question. First, they can help with mindset and then in what they can make available. If a company creates a culture and environment where workers of all ages feel comfortable sharing issues with a peer, manager or mentor, that can help. If a young graduate knows they can ask for practical advice, and a colleague can talk with them, that can only be a good thing.
Beyond that, there are financial wellbeing tools and signposts in a good Employee Assistance Programme (EAP) that companies can make available as a solid practical measure. Companies can also educate young workers around financial management, or make specific targeted offers around repaying student loans.
Thinking more radically, if enough people thought student loans were a bad idea and an inconvenience to business, companies could get together through federations and other groups to lobby government for their abolition.
Spencer: I think that is a great idea.
Andrew: Of course you do.
For more information about how on how to support your teams with an EAP, or financial management and education, get in touch with our team today.
How to use tech to personalise reward and benefits to better support parents and carers
July marks Good Care Month, an annual campaign to celebrate the contribution of carers working in the social care sector, and highlight the profile of care as a rewarding and essential career path, particularly at a time when recruitment and retention in the sector are national priorities. Personal Group’s Andrew Walker looks at how the clever use of HR Tech can help this silent army.
Posted on: 24 July 2025 by Andrew Walker, New Business Development Director
Rethink Employee Benefits Before Your Workforce Walks
The construction industry is in the middle of a people crisis. Skilled construction workers are hard to find, and even harder to keep. HR and site leaders are under pressure to deliver more with less, across multiple sites and roles, supporting a workforce that’s often offline and on the move.
Posted on: 17 July 2025 by James Solomon, New Business Development Director
Parenting is always a juggling act — but being a parent carer is a different world entirely.
As I approach my 15th year of raising a child with a rare genetic condition while trying to maintain a career I genuinely love, I often get asked: “How do you keep all the plates spinning?”
Posted on: 15 July 2025 by Jenny HInde, Chief People Officer
