As a pandemic-era student debt holiday comes to an end, Adidas says it will institute a student loan assistance program for its employees.

The athletic footwear and apparel giant, whose North American headquarters are in Portland, will contribute $100 a month to qualifying workers.

Student loan advocates and some benefits experts applauded Adidas’ move. Reilly Anderson, a Portland benefits consultant at CSNW Benefits, said companies have to offer benefits that are relevant to a generation of young workers.

“It’s great to get a 4% company match on your 401(k),” Anderson said. “But that means nothing to someone with big student debt.”

Adidas said its new assistance program could shorten employees’ repayment period by almost five years.

These programs are still relatively rare. Student debt advocates estimate that 7% to 8% of American companies offer student debt payment as a benefit. Currently, employers can provide up to $5,250 in student loan repayment annually as a tax-free benefit for employees.

Ten years ago, activists and some lawmakers were ringing the alarm bell as the national student loan debt for the first time topped the $1 trillion mark. Nearly a decade later, the total outstanding has jumped to $1.76 trillion.

The numbers in Oregon are equally daunting. About 552,000 Oregonians have student debt totaling $20 billion, said Lane Thompson, the state’s student loan ombuds. That amounts to an average debt of $37,900, roughly the same as the national average.

“The fact that corporations are beginning to offer these kinds of programs is a recognition of the scale of this problem,” Thompson said. “I would say it’s about time.”

Adidas announced its program just as a pandemic-related payment pause for federal student loans will soon wind to a close. The resumption of payments was one of Republicans’ demands in the federal debt ceiling negotiations between President Joe Biden and House Speaker Kevin McCarthy.

Repayment, according to the federal education department, will begin no later than later August. The loans will also resume accruing interest, which had been held at 0% since March 2020.

The end of payment pause could impact the entire American economy. Investment UBS argued that the end of the moratorium could hit a number of consumer products companies — much like Adidas itself — as college payments squeeze shoppers’ liquidity.

At Adidas, employees who work 30 or more hours per week are eligible to enroll after one year of employment. This benefit is available to all areas of the business including corporate, retail and distribution center employees.

The company declined to say how many employees were eligible, or how much the program would cost to implement. Adidas is also offering employees a “financial wellness” program that gives its 10,000 workers free access to various financial resources.

“This is an exciting new program for our people who said that student loan support would significantly help them. Paying for education should not hold our teammates back so we are happy to support them with this benefit,” said Rupert Campbell, president of Adidas North America. “Our employees make Adidas a special place and we strive to give them the very best.”

Campbell said the company’s internal polling showed that 80% of its employees said student debt causes significant stress.

“It’s clear that student loans are top of mind, Campbell said.