Nearly 40 Top Companies Join Obama’s Revolutionary “First Job” Program

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First Job Hiring and Recruiting Compact
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It’s the age-old catch-22: you need a job to get experience, but you cannot get a job without experience.

Earlier this year, President Obama launched a new initiative designed to solve this problem called the First Job Hiring and Recruiting Compact.

Now, nearly 40 big name companies have joined together to help new graduates land their first job.

Here’s what you need to know about how this initiative works, what companies joined, and how it will benefit current students and recent graduates.

Difficulty getting first jobs

For many new graduates, landing a job out of school can feel next to impossible.

That’s because one of the main things employers look for when evaluating their candidate pool is work experience. Even for entry-level roles. Yet, that discrepancy can prevent many fresh grads from getting hired.

And that’s a huge problem. When a young person fails to land that first role, it can have long-lasting implications for their future.

According to the White House, people who experience unemployment between the ages of 16 and 24 earn about $400,000 less over the course of their careers than their peers.

Overall, getting people on the path to employment after graduation is pivotal for their financial success. Not to mention an employed workforce can provide significant benefits for the U.S. economy.

The First Job Hiring and Recruiting Compact

On October 11, President Obama announced that nearly 40 of the nation’s largest employers, including Walmart, AT&T, and Hilton Worldwide, joined the First Job Compact.

This development is in addition to the hundreds of smaller companies who have already joined the program.

Essentially, each company that joins the First Job Compact commits itself to best practices for hiring inexperienced young people between the ages of 16 and 24 for both internships and entry-level positions.

That means truly looking at people with zero experience for entry-level positions, rather than asking for a year or two of work history for a starting role.

At the end of the day, giving these applicants a look can increase their chances of getting well-paying work. It can also help them get their feet in the door of their chosen industries.

What’s more, the First Job Compact doesn’t just benefit young workers. It benefits companies, too.

Research shows that companies that invest in young workers have higher retention rates and employee engagement than other employers. This can help them save money on recruiting new talent in the long-run.

In a statement issued to the media, Ajay Banga, President and CEO of MasterCard, shared his thoughts on the program.

“Programs like this help us to have a real and meaningful impact on the communities where we live and work,” says Banga.

“Together, we can create additional opportunities for young people to get a start in the workforce, while inspiring our current and future employees to drive their own growth and careers,” Banga adds.

Participating companies

Joining the First Job Compact is not a vanity project. It’s a trackable initiative with databases that the government will regularly update.

They’ll also be able to share its progress and show how many people each company hires. That way people can see just how serious each company is about changing how they look at young workers.

To join the First Job Hiring and Recruiting Compact, companies agree to commit to the following practices:

  • Identify jobs and internships for young people with no experience and make them more accessible to low-income individuals
  • Partner with schools, non-profits, and other organizations to connect with young workers
  • Develop a plan for advancement for young workers once hired
  • Track the value young talent adds to the company
  • Develop communications strategy to share how young workers impact the business

The big companies that have signed on to the First Job Compact range from electronics mega brands to food franchises. Below are the companies that have joined so far:

  1. 3M
  2. Alaska Airlines
  3. Archer Daniels Midland Company
  4. AT&T
  5. Chipotle Mexican Grill
  6. CHS
  7. CIELO
  8. Concur Technologies
  9. CVS Health
  10. Delta Air Lines
  11. Dollar General
  12. Fairview Health Services
  13. FedEx
  14.  Frontier Communications
  15. GameStop
  16. Gap, Inc.
  17. Glassdoor, Inc.
  18. Goodwill Industries
  19. The Hershey Company
  20. Hilton Worldwide
  21. IBM
  22. Johnson & Johnson
  23. ManpowerGroup, Inc.
  24. MasterCard
  25. The McDonald’s Corporation
  26. New York Life Insurance
  27. Pacific Gas and Electric Company
  28. Potbelly Sandwich Works
  29. Principal Financial Group
  30. Rackspace
  31. Sears
  32. Shinola
  33. Starbucks
  34. T-Mobile USA
  35. U.S. Bank
  36. Viacom, Inc.
  37. Visa, Inc.
  38. Wal-Mart Stores, Inc.
  39. Xerox Services

How to get your first job

While first jobs or hard to land, this new initiative should make it easier.

So if you’re looking to get your foot in the door with either an internship or an entry-level job, check out these companies first. These businesses have made a public commitment to hiring and developing fresh talent by joining Obama’s First Job Hiring and Recruiting Compact.

Not only are these companies more likely to hire you without any experience, they’re also more likely to invest in your career. You can expect them to provide you with more training and advancement opportunities outlined under the First Job Compact.

If you’re ready to apply to one of these companies, check out these seven ways to make yourself more marketable for post-college jobs. They’ll help increase your chances of getting that first job pronto.

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1 Important Disclosures for Laurel Road.

Laurel Road Disclosures

  1. VARIABLE APR – APR is subject to increase after consummation. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes.

2 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student Loan RefinanceFixed rates from 3.999% APR to 7.804% APR (with AutoPay). Variable rates from 2.480% APR to 7.524% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.480% APR assumes current 1 month LIBOR rate of 2.07% plus 0.91% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score
  2. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

3 Important Disclosures for CommonBond.

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  1. Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). The following table displays the estimated monthly payment, total interest, and Annual Percentage Rates (APR) for a $10,000 loan. The Annual Percentage Rate (APR) shown for each in-school loan product reflects the accruing interest, the effect of one-time capitalization of interest at the end of a deferment period, a 2% origination fee, and the applicable Repayment Plan. All loans are eligible for a 0.25% reduction in interest rate by agreeing to automatic payment withdrawals once in repayment, which is reflected in the interest rates and APRs displayed. Variable rates may increase after consummation. All variable rates are based on a 1-month LIBOR assumption of 2.08% effective July 25, 2018.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Education Refinance Loan Rate DisclosureVariable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2018, the one-month LIBOR rate is 2.07%. Variable interest rates range from 2.72%-8.17% (2.72%-8.17% APR) and will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 3.50%-8.69% (3.50% – 8.69% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown require application with a cosigner, are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan.
  2. Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer with the Education Refinance Loan. Borrowers should carefully review their current benefits, especially if they work in public service, are in the military, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans and replace those with the benefits of the Education Refinance Loan. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision at http://www.citizensbank.com/EdRefinance, including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.
  3. Citizens Bank Education Refinance Loan Eligibility: Eligible applicants may not be currently enrolled, must be in repayment of their existing student loan(s) and must make the minimum number of payments after leaving school. Primary borrowers must be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security Number residing in the United States. Resident aliens must apply with a co-signer who is a U.S. citizen or permanent resident. The co-signer (if applicable) must be a U.S. citizen or permanent resident with a valid U.S. Social Security Number residing in the United States. For applicants who have not attained the age of majority in their state of residence, a co-signer will be required. Citizens Bank reserves the right to modify eligibility criteria at anytime. Interest rate ranges subject to change. Education Refinance Loans are subject to credit qualification, completion of a loan application/consumer credit agreement, verification of application information, certification of borrower’s student loan amount(s) and highest degree earned.
  4. Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  5. Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
  6. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply.
  7. Average savings based on 18,113 actual customers who refinanced their federal and private student loans through our Education Refinance Loan between January 1, 2017 and December 31, 2017. The calculation is derived by averaging the monthly savings of Education Refinance Loan customers whose payments decreased after refinancing, which is calculated by taking the monthly student loan payments prior to refinancing minus the monthly student loan payments after refinancing. The borrower’s savings might vary based on the interest rates, balances and remaining repayment term of the loans they are seeking to refinance. The borrower’s overall repayment amount may be higher than the loans they are refinancing even if their monthly payments are lower.
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