The owner of a brothel in Nevada has a novel idea on how to take a bite out of growing student loan debt. Dennis Hof, owner of the Moonlite Bunny Ranch, introduced a new perk to sex workers. For prostitutes who work for him, he’ll match two months of payments on student loans.
The owner’s legal brothel is part of an HBO feature called Cathouse. Hof said he was inspired after learning of the plight of students who often turn to the sex industry as a means to pay their way through college. This also includes people who can’t find a job after graduating in their field of study, and are burdened with paying off student loans.
His perk includes providing matching money up to the amount of earnings sex workers make at the brothel, according to a Time report. Hof said his offer extends to any prostitute employed by him who attends or attended any two or four-year college or university. It’s unclear if recipients have to attend Nevada-based educational institutions.
Hof published a statement in a PR Newswire press release to explain his motivations for matching payments for brothel workers’ student loans.
“I had a University of Michigan cheerleader named Krissy Summers come to The Bunny Ranch a few years ago after she was $40,000 in debt with student loans. She paid them all off in two months. She even ended up liking the business and staying long enough to fund her graduate studies.”
Yearly, the University Of Northern Nevada in Reno, which is located nearby, organizes a field trip for the sociology class. Professors bring students to the legal brothel to observe how sex workers there interact with clients. The owner said oftentimes students return at a later date and apply for positions as prostitutes. Hof said he never forgets a pretty face.
“When I see the girl working as one of our legal prostitutes and I ask her where I know her from, she always says ‘the sociology department’s field trip!'”
According to a CNBC report, women who earn money in the legal sex business earn about $3,000 weekly in net earnings after splitting their take with the brothel owner. That said, women at the Bunny Ranch could pay down their student loan debt at a rapid pace with the matching offer.
Currently, the Obama Administration, which has tackled the burdensome financial aid crisis, is lobbying Congress for legislation aimed at providing financial aid relief to college students. The strategy is to urge the private sector to offer employees student loan relief programs at work.
As a consequence, the business may be eligible for tax incentives allowed by law. With loans in arrears of some $1 trillion or more, it’s more important than ever for business owners to offer some form of supplemental payments.
While rare, a small number of businesses not in the legal sex industry provide incentives for workers in the former of pay packages. Additionally, some with student loan debt take advantage of their company-sponsored 401(k) plans. Some employers with this type of investment/retirement account offer company-match money. Workers can then use these proceeds to pay down their loans.
Arguably, millennials account for a large number of worker demographics in many industries today. Although some employers offer hover boards, organic/clean meal programs, fitness and yoga classes and other amenities, arguably, many prefer that their student loans be paid, or have access to a subsidy or incentive. The downside is that any withdrawals incur a penalty in most cases.
Andrew Josuweit, chief executive officer of student loan advice site Student Loan Hero, says determining priorities are person-specific.
“If you are a young adult, and you are just out of school, it makes a lot more sense to pay off your debt instead of focusing on your 401(k).”
The brothel owner is doing something noble for sex workers overwhelmed with debt from student loan payments. With the offering of this novel perk, Hof may have to brace for an avalanche of applicants.
[Featured Image: Twitter screenshot]