Douglas Olsen
With student loan debt in the US reaching a new high in 2023, many borrowers are looking for ways to reduce their debt. Luckily, there are several options available to help pay off student loans, including government programs, employer benefits, and nonprofit organizations. Some companies offer student loan repayment assistance as part of their benefits package, while others provide financial wellness benefits such as no-cost consultations with financial professionals. Additionally, the US government offers loan forgiveness programs for those working in public service or for qualifying nonprofits. Various grants and scholarships are also available to help alleviate student loan debt. It is important to be cautious of debt relief scams and always do thorough research before seeking help.
| Characteristics | Values |
|---|---|
| Companies offering student loan repayment assistance | Abbott, Clayco, RTX, Chegg, Gradifi, and more |
| Government programs | Teacher Loan Forgiveness, Public Service Loan Forgiveness, IDR plans, PSLF, TPD discharge |
| Non-profits | National Consumer Law Center (NCLC), National Foundation for Credit Counseling (NFCC) |
| Grants and scholarships | Bold.org, Going Merry, federal websites like studentaid.gov |
| Military and federal agency programs | Department of Defense, Veterans Total and Permanent Disability Discharge, Federal Agency Student Loan Repayment |
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What You'll Learn
Companies offering student loan repayment assistance
Student loan debt is a significant concern for many, with borrowers across the U.S. owing a collective $1.77 trillion in student loans as of 2023. The average borrower carries around $40,000 in student loans, and 59% of college graduates from the class of 2023 took on student debt. To attract and retain employees, some companies have implemented programs to help pay off student loan debt.
- Ally Financial: This financial services company offers a Student Loan Paydown Assistance program that provides up to $100 per month in assistance, with a lifetime maximum of $10,000. They also offer tuition reimbursement of up to $10,000 per year.
- Andersen: Andersen, a tax services and financial consulting firm, offers student loan repayment assistance and tuition reimbursement for its employees. Andersen employees may be eligible for up to $12,000 in student loan assistance, and only need to work half-time (20 hours per week) to receive these benefits.
- Carhartt: Carhartt is a durable workwear clothing company that offers student loan repayment assistance to its employees with student loans or Parent PLUS loans. They partner with Tuition.io to provide employees with $50 per month towards student loan repayment, with a lifetime maximum of $10,000.
- Chegg: Chegg is an online education company offering textbook rentals, exam prep, and other educational services. They offer an Equity for Education Program to help employees repay their student loans, with up to $6,000 per year in student loan repayment assistance. Chegg also provides tuition reimbursement and advocates for other companies to offer similar education benefits.
- CommonBond: CommonBond is a solar financing lender for installers and homeowners. They offer student loan reimbursement assistance for their employees.
- Estée Lauder: Estée Lauder is a multinational cosmetics and skincare company that offers $100 per month for U.S.-based employees' student loans, up to a total of $10,000 in contributions. They also have a Learning & Education Assistance Program that reimburses employees for the cost of tuition and materials for approved academic courses.
- Fidelity Investments: Fidelity Investments is a financial services company that offers student loan benefits through their Step Ahead Student Loan Assistance Program. This program provides up to $2,000 per year in student loan repayment assistance, with a lifetime maximum of $10,000. Employees who have been with the company for at least six months are eligible.
- Google: Google, the ubiquitous multinational technology company, offers a student loan reimbursement benefit of up to $2,500 per year. To qualify, employees must work full-time.
- Hulu: Hulu, the popular Disney-owned streaming service, offers up to $1,200 per year in student loan repayment assistance.
- Nvidia: Nvidia is a visual technology company that offers student loan repayment assistance to recent graduates (those who have graduated within the past three years). Full- and part-time employees working 20 or more hours per week are eligible for up to $350 per month toward student loan repayment, with a lifetime maximum of $30,000. Nvidia's contributions must be in addition to the employee's regular monthly payment.
- RTX: RTX is an aerospace and defense company that contributes to employees' 401(k) plans when they make student loan payments. The company states that eligibility for the program is limited to "employees who aren't able to make student loan repayments and contribute to their 401(k)."
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Federal student loan forgiveness programs
The US Department of Education has predicted a sharp increase in student loan defaults if Biden's student loan forgiveness plan does not go through. There are several federal student loan forgiveness programs and other ways the government can help with repayment.
One such program is the Public Service Loan Forgiveness (PSLF) Program. To benefit from PSLF, you need to repay your federal student loans under an IDR (income-driven repayment) plan or a standard 10-year plan. IDR plans base your monthly payment on your income and family size. If you repay your loans under an IDR plan, the end-of-term balance on your student loans may be forgiven after you make a certain number of payments over 20 or 25 years (240 or 300 monthly payments).
Borrower defence to repayment is a legal ground for discharging federal Direct Loans. Another form of discharge is closed school discharge, which applies if your school closes while you're enrolled or soon after you withdraw. You may also be eligible for forgiveness if you teach full-time for five complete and consecutive academic years in certain elementary or secondary schools or educational service agencies that serve low-income families.
To get TPD discharge, you must have a disability that severely limits your ability to work, now and in the future. This can be a physical or mental disability. If you get a TPD discharge, you don't have to repay any of your federal student loans.
The US Department of Education and Department of Defense also have special benefits for military service members with federal student loans.
In addition to federal programs, some companies offer student loan repayment assistance to attract and retain employees. These programs can take the form of recurring payments to lenders or contributions toward retirement savings. Employers can offer employees tax-free benefits of up to $5,250 through 2025 thanks to the Consolidated Appropriations Act.
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Student loan grants and scholarships
Student loans can be a burden, but grants and scholarships can help ease the financial burden of higher education. Unlike student loans, grants and scholarships do not have to be paid back, except under certain circumstances, such as withdrawing early from a program.
College Grants
College grants are typically need-based, awarded based on a family's economic situation. To determine eligibility, schools consider a student's Free Application for Federal Student Aid (FAFSA) and Student Aid Index (SAI). The SAI is used by schools to calculate the amount of financial aid a student is eligible to receive. Grants are often awarded on a first-come, first-served basis, so it is important to complete the FAFSA early. Federal and state grants are available, and students can also explore grants offered by individual colleges and universities.
Scholarships
Scholarships may be need-based or merit-based, awarded based on a student's abilities, hobbies, ethnicity, or religion. Like grants, scholarships do not have to be repaid in most cases. Students can explore scholarships offered by their college or university, as well as those offered by private organizations and companies. Some examples include the Kentucky Educational Excellence Scholarship (KEES) program, which awards scholarships to Kentucky high school students based on their GPA and test scores, and the Dual Credit Scholarship, which helps Kentucky high school students pay for dual credit classes at participating colleges or universities.
In addition to grants and scholarships, students can also consider employment with companies that offer student loan repayment assistance. According to a report by the Employee Benefit Research Institute, about 36% of employers offered such assistance in 2024. These programs can provide recurring payments directly to lenders or contributions towards retirement savings. Financial consulting companies, such as Gradifi, also offer student loan repayment assistance to their employees.
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Debt relief and settlement
If you're struggling to repay your student loans, there are several options for debt relief and settlement. Firstly, it's important to distinguish between federal and private student loans, as the options for relief vary between the two.
Federal Student Loans
For federal student loans, there are income-driven repayment plans that base your monthly payments on a percentage of your monthly income. In some cases, this could result in $0 payments. These plans are offered by the federal government at no cost. Additionally, deferment or forbearance options are available, which allow you to temporarily pause your student loan bills. However, interest may still accrue during this period, increasing the overall amount you owe.
If you've defaulted on your federal student loans, loan rehabilitation is an option to consider. This process can bring your loans back into good standing and make them eligible for forgiveness. It's important to note that refinancing federal student loans is generally discouraged, as you'll lose access to federal benefits and forgiveness programs.
Private Student Loans
For private student loans, refinancing can be a viable option. This involves taking out a new private student loan with a lower interest rate or a longer repayment term, which can reduce your monthly payments. However, it's crucial to remember that refinancing federal student loans is usually not advisable due to the loss of federal benefits.
If you're significantly behind on private student loan payments, debt settlement through a for-profit company is an option, but it's dangerous. These companies typically require you to stop making payments on your debt and instead put money into an escrow-like account that goes towards paying them. Your credit score will be heavily impacted by settling your debt in this way, making it harder to qualify for other loans or mortgages.
Debt Relief Scams
It's important to be cautious of debt relief scams. Always research organisations before seeking help and be wary of companies that charge high upfront fees without providing legitimate relief. Remember that your student loan servicer is not obligated to settle your debt for less than you owe, and working with a debt settlement company does not guarantee a settlement. Check with your state's attorney general for consumer complaints about debt settlement companies, and be cautious of companies that make empty promises or request payments before providing any services.
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Student loan servicers
To attract and retain employees, some companies offer student loan repayment assistance. These companies include:
Financial Services Companies
- Ally: Employees can receive $100 monthly toward student loan repayment, with a $10,000 lifetime maximum.
- Fidelity: Employees can receive up to $15,000 in student loan repayment assistance. Employees working 20 to 30 hours per week are eligible for a lifetime maximum of $7,500.
- SoFi: Full-time employees can receive up to $5,250 per year in student loan repayment assistance.
Other Companies
- Abbott: Offers a program to help employees pay down student loans and save for retirement.
- Clayco: Employees can direct their 401(k) contribution to their student loan debt, and Clayco will match that contribution.
- RTX: Offers a program to help employees pay down student loans and save for retirement.
- Chegg: Offers an annual boost to student loan repayments, even for those who did not graduate with a degree. Employees with at least two years of tenure can receive up to $5,000 annually, while directors and vice presidents can receive up to $3,000 annually.
In addition to these companies, there are other organizations and government programs that can help with student loan debt. For example, the National Consumer Law Center (NCLC) offers loan forgiveness, repayment plans, and loan consolidation services. The National Foundation for Credit Counseling (NFCC) provides repayment and debt payoff plan options. Local nonprofits may also offer student loan assistance, and national nonprofits can sometimes connect individuals with local organizations providing such assistance.
It is important to do your research to avoid debt relief scams and to explore all options before making a decision. For instance, refinancing can help lower monthly payments for private student loans, but it is generally discouraged for federal loans as borrowers may lose their federal benefits. Similarly, debt relief or settlement options should be approached with caution, as they can be risky.
Individuals with federal student loans should first explore options available through studentaid.gov, including loan forgiveness programs such as the Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness (TLF) programs. An Income-Driven Repayment (IDR) plan may also be an option, where monthly payments are based on income and family size.
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Frequently asked questions
Yes, some companies have implemented programs to help pay off student loan debt. These include Abbott, Clayco, and RTX, Chegg, and Gradifi.
If you have federal student debt, you should first explore the options available at studentaid.gov. You may be able to get help with repayment or forgiveness through federal student loan programs.
If you have private student loans, you may want to consider refinancing to get a lower monthly payment. However, refinancing federal student loans is generally discouraged as you will lose all federal benefits.
Yes, there are several grants and scholarships available to help with student loan debt. These include the Veterinary Medicine Loan Repayment Program, the National Health Service Corps Loan Repayment Program, the Teacher Loan Forgiveness Program, and scholarships from Bold.org.
Yes, there are several organizations that offer student loan help, including the National Consumer Law Center (NCLC) and the National Foundation for Credit Counseling (NFCC). Local nonprofits may also be able to provide assistance.
