Tennessee city begins employee student loan repayment plan

MEMPHIS, Tenn. (AP) - A Tennessee city is starting a new program that will help employees repay their student loans.

The city of Memphis said Thursday that beginning July 1, eligible city workers will receive monthly contributions of $50 for repayment of their student loan principal.

Those who qualify must be active, full-time employees for at least 12 months.

Alex Smith, the city’s chief human resources officer, says the program is being viewed “as an important investment in our employees.”

The program is being administered by Tuition.io, a platform for employee student loan contributions. Scott Thompson, CEO of Tuition.io., says the move by Memphis should be “a clarion call for other municipalities to follow suit.”