'Bunny Ranch' Brothel Helps Its Workers Pay Off Student Loans

With student loan debt a top financial concern among many Americans, particularly young workers, an increasing number of companies have announced plans to help employees pay off their student loan debt. A brothel is now among those employers, as the owner of the Bunny Ranch in Nevada recently announced he would match young women’s loan payments they make while working as legal prostitutes.

Bunny Ranch is one of about two dozen legal brothels in Nevada (the only state where prostitution is legal) and is the subject of HBO series “Cathouse.” Dennis Hof, the owner, decided to offer student loan repayment to women after noticing an increase of indebted college students coming to work at Bunny Ranch, according to a news release about the announcement.

Hof said he’ll match any loan payments his workers make with money they earn during the first 60 days as a legal prostitute at the Bunny Ranch. The news release doesn’t specify whether the women need to have graduated or merely have student loan debt, though it says the program is open to “coeds of accredited two- and four-year universities.”

“[M]aking education affordable to all who want it is a humanitarian endeavor,” Hof said in the news release. “I felt a responsibility to use my position to help others in that regard.”

So, yeah, sex work for student loan payments is a legitimate thing. Think of it what you will, but it exists.

The controversy of prostitution aside, this story brings up an important financial topic: Borrowers have a handful of options for making their student loan debt more manageable. One way is to find an employer that offers repayment assistance. Another is to go into a career field that qualifies for federal student loan forgiveness.

If you’re struggling to afford your student loan payments, you may also want to consider income-based repayment, deferment or forbearance. These options generally exist only for federal student loans, but no matter who your lender is, if you’re in danger of missing loan payments and tumbling into the dark pit of student loan default, contact your loan servicer to see what can be done to help you remain in good standing on your loans. Missing payments or defaulting on your student loans can severely damage your credit, and recovering from such a financial setback can be extremely difficult. You can see how your student loans are impacting your credit scores for free on Credit.com.