NORTH LIBERTY, Iowa (9/14/15)--Recent college graduates often lug large amounts of student debt with them to their first jobs. But if that job happens to be at University of Iowa Community CU (UICCU), a new benefit the credit union offers will make that burden a little easier to manage.

Starting this month, the North Liberty, Iowa-based credit union is offering a student loan refinancing program that will restructure employees’ debt so they don’t have to pay interest.

At an interest rate of 4.5%, for example, five years of payments on $35,000 worth of student loans would reduce the debt to $19,493, including the loss of $6,296 in interest. Under the credit union’s program, an employee starting with the same debt would have reduced the amount to $13,220 (The Gazette Sept. 8).

“This is a game-changing opportunity for a lot of our employees who recently graduated from college or for parents with kids in college,” Jeff Disterhoft, UICCU president/CEO, told News Now. Both recent students and parents with kids who have college debt are eligible for the program, he said.

“(The program) especially benefits some of our entry-level employees” who just graduated college, Disterhoft added.

Further, Disterhoft said that the benefit not only helps to retain employees, but it’s also useful when marketing the credit union as a potential employer.

“We continue to have a great amount of growth so we’re always looking for ways to differentiate ourselves when it comes to hiring,” he said.

Sue Freeman, human resources director for the credit union, told The Gazette that a number of employees have already signed up. Disterhoft said that the program is currently in a trial run, but that the credit union has plans to install it permanently.