College Bound, Inc. founder Jim Northam celebrates 30 years in the industry, giving teenagers a reason to stay in their jobs and employers to have lower attrition rates.
Winona, Minnesota, May 16, 2025 (GLOBE NEWSWIRE) — 
College Bound, Inc.
Founded in 1995 by financial services veteran Jim Northam, College Bound, Inc. now celebrates three decades of success connecting high school and college-aged workers with employers willing to offer qualified education benefits. With 70% of 16-to-19-year-olds having been with their current employer for less than a year, this has become even more imperative.
“It’s about creating a sense of purpose and payoff,” says Northam. “When a 15-year-old, and more importantly, their parents, know that staying with a job for two years or more could mean walking away with anywhere between $3,000 and $10,000, depending on how long they stay, I believe they’re a lot more likely to stick with it. In some cases, depending on total years of service, it could be even more. This amount is tax-free education money, which could really change the family’s life.”
At the heart of the College Bound Program is a Qualified Educational Assistance Plan, authorized under Section 127 of the Internal Revenue Code. Participating employers commit to offering up to $5,250 a year in tax-free educational benefits to eligible employees, money that can be used not just for traditional college tuition, but for vocational schools, professional or industrial certifications, trade schools, or even career-advancing online courses. These funds are income tax-exempt for employees and exempt benefit payments for employers.
To qualify, employees must work a minimum of 1,200 hours over at least two years. That means kids who typically job-hop every few months must now commit. And that, says Northam, is where the real transformation begins. “Turnover in this age group of 15 to 21 is off the charts,” he says. “I’ve been in this space for 30 years, and one thing that hasn’t changed is the average length of service for young part-timers. It’s always short. But if you can get them to see a tangible, financial benefit for staying, suddenly you’re building habits of discipline, reliability, and commitment.”
The College Bound Program begins tracking an employee’s benefit accrual from day one. Every dollar they earn is matched by an additional 15 to 20% from their employers, held in trust until they’re vested. If they leave before hitting the 1,200-hour threshold, the funds are forfeited. But if they stay, they walk away with a tax-free pool of money for their next chapter, may it be post-graduation or a learning course and certification.
College Bound, Inc. supports the employer through the entire process, from plan setup to quarterly benefit tracking. Every three months, Northam’s team provides customized reports showing each enrolled employee’s accrued balance, how far they are from vesting, and what they stand to gain. Employers are encouraged to post the reports, sparking conversations among staff.
There’s also a responsibility built into the system. Once vested, employees have two years from their high school graduation date, or vest date, to enroll in a qualifying educational program and up to 72 months to use their benefit. “It’s not open-ended,” Northam explains. “The kids have deadlines to meet. And the employer has to manage their liability. I help both sides navigate that.”
The ‘loyalty economics’ that Northam has created is a systematic win-win. When kids stay longer, others follow. When staff stay longer, employers thrive. He says, “We’re not promising miracles, but a structure to follow: one that gives kids a reason to stay, learn, and grow, and gives parents a reason to encourage their kids to stay on track.”
Media Contact
Name: Jim Northam
Email: jim@collegeboundinc.com
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