If you have student loan debt, you may have more resources available to you than you know. Many students and graduates are aware of the commonly known programs like income-driven repayment plans or student loan refinancing.
However, there are employers that are now offering student loan repayment assistance to employees as an employee benefit or perk.
Student Loan Forgiveness Programs
Student loan forgiveness programs may be available if you’re employed by a non-profit organization, or federal and state-based employer.
If you’re seeking employment in the public service sector, then you’ll want to look into the Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness programs. Common public service sector industries include educational institutions, the military, or healthcare. Usually, you’ll have to commit to working a certain number of years within the institution. Then, when you’ve completed those years, some of or all your remaining student loan debt may be forgiven.
Student Loan Repayment Assistance Benefits
Offering repayment assistance as an employee benefit is different than the programs mentioned above. Due to the major economic challenges of the COVID-19 pandemic, the government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. As part of this legislation, neither the employee nor the company will be taxed on an employer student loan contribution. This acts much like other company benefits, such as matching an employee’s 401(k) contribution or tuition reimbursement.
Through December of 2025, companies can help employees pay up to $5,250 toward their student loans.
Ask Potential Employers If They Offer Student Loan Repayment Benefit
The number of companies offering student loan repayment assistance is on the small side, but the numbers are growing. Larger companies with more extensive benefit programs are more likely be early adopters and to offer this type of employer contribution benefit. When you’re seeking employment, don’t be afraid to ask if the company has this assistance benefit during the interview.
Employer Student Loan Repayment: How It Works
If you work for a company that offers student loan repayment as a benefit, they will either make loan payments to you or the loan provider. Some employers will require that you work for them a certain number of years to qualify for the entirety of the benefit.
The company will typically set a lifetime cap for payments. Large companies, such as Fidelity Investments, set a cap of $10,000 for each student. Google will match up to $2,500 per year with no lifetime cap.
Some employers may coordinate with loan refinancers for better rates and benefits on your student loan. For this type of student loan refinancing benefit, employers will do the work to get you the most assistance available for repaying and saving on your student loans.
What Companies Offer a Student Loan Assistance Repayment Benefit?
More and more companies are offering loan repayment as a perk to attract employees, especially after the passage of the CARES Act. The following are some employers that offer student loan assistance:
- Ally Financial
- Estee Lauder
- Fidelity Investments
- Lockheed Martin
Be Proactive About Student Loan Assistance
Be proactive in asking potential employers if they offer any student loan repayment assistance. If you’re already employed, talk to the human resources department to see if they offer assistance. In today’s competitive job market, they may be willing to add it as a new benefit. If not, check into student loan refinancing companies yourself to see if you can consolidate your loans and qualify for a lower interest rate or lower monthly payment.
Name: Michael Bertini
Email: [email protected]
Job Title: Consultant
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