Ibrahim Gardner
Student loan repayment assistance is a benefit offered by some employers to help attract and retain talent. In 2024, about 36% of employers offered student loan repayment assistance, according to a report by the Employee Benefit Research Institute. Employers in both the public and private sectors offer such assistance, with government agencies and federal government employees having access to repayment assistance programs. Some companies that offer student loan repayment assistance include Chegg, Aetna, CommonBond, and Fidelity.
| Characteristics | Values |
|---|---|
| Percentage of employers offering student loan repayment assistance | 36% |
| Year | 2024 |
| Source | Employee Benefit Research Institute |
| Tax-free benefits for employees | Up to $5,250 |
| Year | 2025 |
| Source | Consolidated Appropriations Act |
| Student loan assistance type | Recurring payments directly to lenders or contributions towards retirement savings |
| Employers offering student loan repayment assistance | Abbott, Clayco, Fidelity, Google, RTX, SoFi, 23andMe, Aetna, Ally Financial, Andersen, Carhartt, Carvana, Chegg, CommonBond, Travelers Insurance, AlloSource, Gradifi, Education services |
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What You'll Learn
Companies that help pay off student loans
Paying off student loans can be a daunting task, but there are companies that offer student loan repayment assistance as part of their employee benefits package. In 2024, about 36% of employers offered student loan repayment assistance, according to a report by the Employee Benefit Research Institute. These employers span various industries, including healthcare, finance, and technology.
- Abbott: This healthcare technology company offers a benefit that helps pay off employee student loans and saves for retirement. When eligible Abbott employees make a student loan payment of at least 2% of their salary, the company contributes 5% to their 401(k).
- Clayco: Clayco matches its employees' 401(k) contributions directed toward student loan debt. They also pay $100 per month toward an employee's student loans in the first year, increasing by $50 each subsequent year up to $250 per month in the fourth year.
- Fidelity: This financial services company offers a student loan repayment benefit with a lifetime maximum of $15,000 for full-time employees and $7,500 for those working 20 to 30 hours per week.
- Google: Google employees can receive up to a $2,500 per year matching student loan repayment benefit.
- SoFi: SoFi, a financial services company and private student loan lender, offers its full-time employees a monthly contribution of up to $5,250 per year toward student loan repayments.
- 23andMe: This consumer genetics company offers $2,300 in annual tuition reimbursement and monthly contributions toward student loan payments.
- Aetna: Under the CVS Health company umbrella, Aetna provides tuition assistance, reimbursement, and student loan refinancing assistance. Full-time employees can receive up to $2,000 per year in student loan assistance, with a lifetime maximum of $10,000.
- Ally Financial: This financial services company has a Student Loan Paydown Assistance program for its employees, offering $100 monthly toward student loan repayment, with a $10,000 lifetime maximum.
- Andersen: This tax services and financial consulting firm offers up to $12,000 in student loan assistance and tuition reimbursement. Employees only need to work half-time (20 hours per week) to be eligible.
These companies recognize the burden of student loan debt on their employees and have implemented these programs to attract and retain talent. When considering employment opportunities, it is beneficial to research and inquire about such benefits to maximize your ability to manage student loan repayment effectively.
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Student loan repayment assistance programs
LRAPs are administered by law schools, state bar associations, foundations, and federal and state governments, providing debt relief to law graduates entering specific types of employment, usually law-related public interest jobs. Additionally, twenty-four LRAPs in 23 states provide loans or grants to civil legal aid attorneys and other public interest attorneys to help pay off their educational debt.
Many public sector employers now offer Loan Repayment Assistance Programs to their employees. Employers can offer tax-free benefits up to $5,250 through 2025 thanks to the Consolidated Appropriations Act. Some examples of companies that offer student loan repayment assistance include:
- Fidelity, a financial services company, offers a student loan repayment benefit with a lifetime maximum of $15,000 for full-time employees and $7,500 for employees working 20-30 hours per week.
- Google offers a reimbursement-basis benefit of up to $2,500 per year for US-based, full-time employees.
- SoFi, a financial services company and private student loan lender, contributes up to $5,250 per year towards its full-time employees' student loan repayments.
- Carhartt, a durable workwear clothing company, offers monthly payments towards the principal on its employees' student loans.
- Carvana, an automotive e-commerce company, offers $1,000 towards full-time employees' student loan payments.
- 23andMe offers $2,300 in annual tuition reimbursement and monthly contributions towards student loan payments.
- Aetna, under the CVS Health company, provides $2,000/year in student loan assistance with a lifetime max of $10,000, along with tuition reimbursement and refinancing assistance.
- Ally Financial has a Student Loan Paydown Assistance program for its employees.
It is important to note that these programs may have certain requirements and limitations, such as a minimum employment period before becoming eligible or a maximum benefit amount.
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Tax-free benefits
Many companies recognize the burden of student loan debt on their employees and have implemented programs to help pay off this debt. In 2024, about 36% of employers offered student loan repayment assistance, according to a report by the Employee Benefit Research Institute.
Employers can offer employees tax-free benefits of up to $5,250 per year through 2025, thanks to the Consolidated Appropriations Act and the CARES Act. Student loan assistance can take the form of recurring payments directly to lenders or contributions toward retirement savings. For example, employees can direct their 401(k) contribution to their student loan debt, and some companies will match that contribution.
The option to use educational assistance programs to pay student loans has been available for payments made after March 27, 2020, and under current law, will continue to be available until December 31, 2025. Traditionally, educational assistance programs have been used to pay for books, equipment, supplies, fees, tuition, and other education expenses for the employee. However, these programs can now also be used to pay the principal and interest on an employee's qualified education loans. Payments made directly to the lender, as well as those made to the employee, qualify.
By law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year. Assistance provided above this amount is taxable as wages. Employers who don't already have an educational assistance program may want to consider setting one up to take advantage of this provision.
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Tuition reimbursement
Many companies are now offering tuition reimbursement as part of their employee benefits package. This is in response to the rising cost of student loan debt, which can affect employees' financial peace of mind and ability to recruit top talent.
- Amazon offers tuition and fee coverage for front-line employees after a 90-day waiting period, as part of their Amazon Career Choice program.
- Apple provides the Apple Education Reimbursement program, which helps with formal education up to $5,250.
- AT&T offers tuition assistance of up to $5,250 per year for part-time and full-time employees who have worked at the company for at least six months.
- Bank of America provides up to $5,250 in job-related college courses or degree programs annually for employees who have been with the company for at least six months.
- Best Buy has a tuition assistance program for full-time employees working at least 32 hours per week and employed for a minimum of six months.
- Boeing offers extensive college tuition support globally through its Learning Together Program (LTP). The program covers up to 100% of tuition, books, and fees for STEM programs, paid directly to the school.
- Chick-fil-A provides tuition discounts and grants that can be applied to over 100 partner colleges and universities through Scholarship America.
- Chipotle has a Tuition Reimbursement and Assistance plan, contributing up to $5,250 per year toward eligible undergraduate or graduate programs.
- Comcast offers tuition assistance of up to $5,750 annually for full-time employees enrolled in a Comcast-approved degree program.
- FedEx provides tuition reimbursement of up to $5,250 per year for employees pursuing a college degree or attending trade, vocational, or technical school.
These are just a few examples, and there are many other employers that offer tuition reimbursement or student loan repayment assistance. It is worth researching and comparing different companies' benefits to find the best option for your needs.
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Student loan repayment plans
Repayment assistance can come in various forms, such as recurring payments directly to lenders, contributions to retirement savings, signing bonuses, or tuition reimbursement. Some companies offer a monthly contribution towards loan payments, while others provide a lifetime maximum benefit. For example, Fidelity offers a lifetime maximum of $15,000 for full-time employees and $7,500 for those working 20 to 30 hours per week.
It is important to note that there may be eligibility requirements and timeline constraints associated with these benefits. Some companies may require employees to work for a set period before becoming eligible for repayment assistance. Additionally, there may be limitations on the benefit amount, with employers offering tax-free benefits up to $5,250 per year through 2025, thanks to the Consolidated Appropriations Act.
When considering employment opportunities, it is advisable to research and understand the specific details of an employer's student loan repayment program, including any requirements and limitations. This information can usually be obtained from the company's human resources department.
Additionally, there are government assistance programs available, and certain career choices may make you eligible for these programs. For instance, health professionals, public defenders, military members, and STEM workers may be eligible for government-sponsored student loan repayment assistance.
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Frequently asked questions
Yes, there are employers that will help pay off student loans. Companies like Clayco, Fidelity, RTX, SoFi, Live Nation, New York Life, Nvidia, Peloton, PricewaterhouseCoopers, and Staples offer varying levels of student loan repayment assistance.
You can directly ask your employer about student loan repayment benefits or inquire about financial wellness benefits.
You can look into grants, scholarships, and loan forgiveness programs. For instance, the Public Service Loan Forgiveness (PSLF) program is available for volunteers and nonprofit employees. There are also career-based grants for specific fields like teaching and medicine.
Offering student loan repayment assistance helps employers attract and retain skilled employees.
Yes, employer educational assistance programs allow employers to provide tax-free financial assistance to employees for certain education expenses.
