Companies helping employees tackle student loan debt

For years, policymakers have debated different approaches to helping the poor , but new data offers resounding evidence for a strategy that works: an approach known as a “Graduation” program. This method offers participants a “productive asset” to generate income with training on how to use it, as well as the resources (such as healthcare, food, loans, and coaching) to maintain the asset while building a pathway out of poverty.

Infrastructure Development Company Limited (Idcol), a government-backed Bangladeshi energy and infrastructure group, is helping bring solar power to homes in rural Bangladesh that once relied on dangerous kerosene or expensive diesel for electricity. The keys to Idcol’s expansion across Bangladesh are financing plans that cater to lower-income people, as well as partnerships with 56 grass-roots organizations like the microfinance institution Grameen. Solar energy is reliable, clean, and more cost effective in the long run, and has become a lifeline for low-income Bangladeshis living beyond access of the main grid.

Flexibility allows employees to “work smarter and better.” The productivity payoffs of offering part-time hours and remote work outweigh the administrative costs of such policies, according to a study in Australia.

An Oakland nonprofit incubator, The Runway Project, addresses racial and economic injustices in entrepreneurship by offering flexible loans for people of color and low-income individuals looking to start a business. Borrowers benefit from flexible loan terms and qualifications, both of which are usually barriers to entry for people of color in the business world.

Stockholm, Sweden is known as the best city in the world for work-life balance, as it boasts flexible work hours and nearly two years' parental leave per child for each parent. While raising a child with a full-time career still poses challenges, the norm for businesses in Stockholm is to cater to working parents' busy schedules in order to support equal childcare between mothers and fathers.

A collaborative funding organization called the Runway Project gives loans to primarily Black entrepreneurs in the Oakland area. The initiative aims to address racial disparities in startup capital by reducing the financial risk of starting a business. The program also includes personalized support as a "wrap around" approach to the lending process.

Europe's generous social policies, such as allowing employees to retain their salaries while taking sick time to care for themselves or family members, may help to mitigate the coronavirus outbreak while also safeguarding the economy. Although the long-term impacts are yet unknown, in the short term, government-provided incentives are helping people and businesses stay afloat.

Refugee women arriving in Brazil have been able to achieve financial independence through the work of an organization called Women of the Global South, an organization that provides women with the tools and skills to sell textiles. In addition to providing entrepreneurial skills, it also helps refugee women with transportation, classes, sewing machines and even provides cash for emergencies and help getting in touch with family members they have been separated from.

A group of young, single mothers is supporting each other through a savings group that provides loans to its members. Participants can take out loans to buy livestock, invest in business ventures, or learn new skills. The informal loan network is a form of mutual aid and is a means of improving their financial situation.

Grants for women living in refugee camps have helped recipients start businesses and learn new skills, allowing them to improve their quality of life. Additionally, the women created an informal cooperative and take turns investing a percentage of proceeds from each successful business into another member’s business.