Lori Meadows
With student debt on the rise, companies are increasingly offering student loan repayment assistance to their employees. This benefit can help employees pay off their student loans faster and attract and retain top talent. In 2024, about 36% of employers offered student loan repayment assistance, according to a report by the Employee Benefit Research Institute. This setup can also help employees avoid having to choose between paying off their student loans and saving for retirement. There are various ways in which companies can help employees with their student loan repayment, including lump-sum payments, recurring payments, and contributions towards retirement savings.
| Characteristics | Values |
|---|---|
| Percentage of employers offering student loan repayment assistance | 36% in 2024 |
| Companies offering student loan repayment assistance | Nvidia, Ally Financial, Clayco, Fidelity, Connelly Partners, Estée Lauder, First Republic, Google, Hulu, Aetna, Chegg, New York Life Insurance Company, Carhartt, Carvana, Abbott, Peloton, Penguin Random House, PWC, Andersen Global |
| Student loan repayment assistance amount | $50 to $500 per month, up to $350 per month (Nvidia), $100 per month (Ally Financial), Connelly Partners, Estée Lauder, First Republic, Peloton, Penguin Random House, PWC, Andersen Global, $2,500 per year (Google), $1,000 per year (Carvana), $100 monthly towards student loan repayment and $100 monthly towards a 529 college savings plan (Ally), $100 per month for the first year, then an increase of $50 each subsequent year (Clayco), $12,000 (Andersen) |
| Student loan repayment assistance eligibility | Recent graduates (within the last three years), full-time and part-time employees, employees working at least 20 hours per week, employees who make at least the minimum payment each month |
| Student loan repayment assistance structure | Lump-sum payment, signing bonus, recurring payments, contribution to retirement savings, reimbursement, direct payments to lenders, tuition reimbursement |
| Benefits for employers | Tax-free up to $5,250, recruitment and retention of employees, engagement of employees |
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What You'll Learn
Companies offering student loan repayment assistance as a benefit
As student debt continues to rise, loan repayment assistance is becoming an increasingly popular employee benefit. According to the Employee Benefit Research Institute, about 36% of employers offered student loan repayment assistance in 2024. This benefit can help employees pay off their student loans faster, and companies can offer employees tax-free benefits of up to $5,250 through 2025 thanks to the Consolidated Appropriations Act.
- Ally Financial: This financial services company has a Student Loan Paydown Assistance program that offers $100/month in assistance, with a lifetime maximum of $10,000. It also provides up to $10,000 per year in tuition reimbursement and a $100 monthly 529 Education Savings Plan benefit.
- Andersen: This 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 a week) to receive these benefits.
- Carhartt: This durable workwear clothing company offers student loan repayment assistance to its employees with student loans or Parent PLUS loans taken out for a child's education.
- Chegg: This online education company offers an Equity for Education Program to help its employees repay their student loans. Chegg also provides tuition reimbursement and a $1,000 annual cash grant available to all employees with student debt. Employees who have been with Chegg for at least two years are eligible for up to an additional $5,000 per year in student loan repayment assistance.
- Clayco: This construction engineering company offers student loan repayment assistance to employees who make at least the minimum payment each month. Employees can choose one or both plans: Clayco pays $100 per month toward an employee's student loans for the first year, then increases the payment by $50 each subsequent year, up to a maximum of $250 per month in the fourth year. Clayco also matches employees' 401(k) contributions directed toward student loan debt.
- Fidelity: This financial services company offers a student loan repayment benefit with a lifetime maximum of $15,000. Employees who work 20 to 30 hours per week are offered a lifetime maximum of $7,500, and eligible employees can participate from their first day with the company.
- Nvidia: This technology company offers a generous student loan repayment program, providing up to $500/month for eligible employees (including full- and part-timers). To qualify, employees must have graduated within the last three years. The maximum benefit can wipe away up to $30,000 from an employee's student loan balance.
- Peloton: This at-home fitness company offers $100/month in student loan repayment assistance, but has not disclosed the maximum lifetime benefit amount.
- Penguin Random House: This publisher offers a student loan repayment assistance program in the amount of $100/month, with a maximum benefit of $9,000.
- PWC: PWC's Student Loan Paydown program helps associate- and senior associate-level employees with up to $1,200 per year in student loan payment assistance, maxing out at $10,000.
- Google: This ubiquitous multinational technology company offers a student loan reimbursement benefit of up to $2,500 per year. To qualify, employees must be full-time and not contractors.
- Guardian: This life insurance company advertises student loan repayment assistance as a benefit on its website, but does not disclose the amount of support provided.
- Hulu: The popular Disney-owned streaming service offers up to $1,200 a year in student loan repayment assistance.
- Abbott: This health care 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 will make a 5% contribution to the employee's 401(k).
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Student loan repayment assistance through government agencies
Student loan repayment assistance is becoming an increasingly popular employee benefit. In 2024, about 36% of employers offered student loan repayment assistance, according to a report by the Employee Benefit Research Institute. Many companies have implemented programs to help pay off student loan debt to attract and retain employees.
Federal student loan repayment programs permit agencies to repay federally insured student loans as a recruitment or retention incentive for candidates or current employees of the agency. Under 5 U.S.C. 5379 and 5 CFR part 537, federal agencies are authorized to implement a program under which they may agree to repay certain types of student loans. This program is intended to facilitate the recruitment and retention of highly qualified employees by allowing agencies to repay part or all of their federally insured student loans.
The U.S. Department of Education also offers several federal student loan repayment options. The Public Service Loan Forgiveness (PSLF) program is available to people who work full time for the federal government, a state or local government, or a qualifying non-profit. Borrowers who enroll in the program will have their loans forgiven after making 120 qualifying payments, assuming they follow all program requirements. The Biden Administration also announced the SAVE Plan, which includes a new income-based repayment assistance plan that will be available to borrowers by July 1, 2026.
Additionally, the Bureau of Health Workforce offers eight programs that repay part of school loan debt in exchange for service in an eligible healthcare facility for a community in need.
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Student loan repayment assistance through private employers
Student loan repayment assistance is an increasingly popular employee benefit. In 2019, only 4% of companies offered student loan repayment benefits, but that number grew to 14% in 2024, according to the International Foundation of Employee Benefit Plans (IFEBP). This benefit can help employees pay off their student loans faster, but program structures vary.
Some companies offer student loan repayment assistance as a signing bonus, while others make recurring payments directly to the employee's lender. For example, financial services company Ally offers a Student Loan Paydown Assistance program that provides employees with $100/month in assistance, with a lifetime maximum of $10,000. Additionally, employees can receive $100 per month contributed to a 529 college savings plan, with the same lifetime maximum.
Other companies that offer student loan repayment assistance include Nvidia, Peloton, Penguin Random House, PWC, Clayco, Google, Fidelity, and Chegg. The amount of assistance provided varies by company, with some offering a flat monthly amount and others matching employee contributions up to a certain limit. For example, Nvidia offers up to $500/month for eligible employees, while PWC provides up to $1,200 per year in assistance.
It's important to note that student loan repayment assistance is typically offered as a tax-free benefit, up to a limit of $5,250 per employee per year. Payments above this amount are considered taxable income.
If your employer does not offer student loan repayment assistance, you may still be able to access government assistance programs or inquire about financial wellness benefits. These benefits can include services like no-cost consultations with financial professionals and debt management tools to help you build a personal student loan repayment plan.
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Student loan repayment assistance for public service workers
Many companies recognize the burden of student loan debt on their employees and have started offering repayment assistance as part of their employee benefits packages. In 2024, about 36% of employers offered student loan repayment assistance, according to a report by the Employee Benefit Research Institute.
Some companies that offer student loan repayment assistance for public service workers include:
- Nvidia: This technology company offers up to $500 per month for eligible employees (including full- and part-timers). To qualify, you must have graduated within the last three years.
- Peloton: This at-home fitness company offers $100 per month in student loan repayment assistance.
- Penguin Random House: This company offers a student loan repayment assistance program of $100 per month, with a maximum benefit of $9,000.
- PWC: PWC's Student Loan Paydown program offers up to $1,200 per year in student loan payment assistance, with a maximum benefit of $10,000.
Additionally, employees of public service agencies may be eligible for the Public Service Loan Forgiveness (PSLF) program. This program is available to individuals working full-time for the federal government, a state or local government, or a qualifying nonprofit. Borrowers who enroll in the program can have their loans forgiven after making 120 qualifying payments, provided they meet all program requirements.
It is important to note that each company creates its own student loan repayment benefits and guidelines, and it is recommended to inquire with the employer's human resources department to understand the specific details of their program.
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Student loan refinancing
When considering refinancing, it's important to compare lenders and look at interest rates (fixed vs. variable), repayment terms, and monthly payments. You may also want to consider any benefits associated with your current loans, such as autopay discounts or loyalty rewards, that you may lose if you refinance. Additionally, if you have federal loans, refinancing them will turn them into private loans, causing you to lose access to federal repayment programs and protections.
Some companies that can help with student loan refinancing include SoFi, Credible, and Earnest. These companies offer competitive rates and flexible terms, allowing you to refinance your student loans quickly and easily online. It's important to note that refinancing may not be the best choice for everyone, but it can make a significant difference in the right circumstances.
Alternatively, some companies offer student loan repayment assistance as an employee benefit. This can take the form of recurring payments directly to lenders or contributions toward retirement savings. For example, the financial services company Ally offers a student loan repayment program that provides employees with $100 per month toward student loan repayment, with a $10,000 lifetime maximum. Other companies that offer similar benefits include Nvidia, Peloton, Penguin Random House, and PWC.
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Frequently asked questions
Companies can pay off student loans in a variety of ways, including:
- Recurring payments directly to lenders
- Contributions towards retirement savings
- Lump-sum payments
- Payments tied to retirement savings
- Payments in exchange for unused vacation time
Here are some examples of companies that offer student loan repayment assistance:
- Nvidia
- Peloton
- Penguin Random House
- PWC
- Ally Financial
- Carhartt
- Clayco
- Fidelity
- Abbott
- Connelly Partners
- Estée Lauder
- First Republic
- Hulu
- Aetna
- Chegg
- New York Life Insurance Company
You can research employers that offer student loan repayment assistance by looking at third-party lists online and checking company websites. You can also ask the company's human resources department about their benefits.
Yes, there are several government-run student loan repayment assistance programs, such as the Public Service Loan Forgiveness (PSLF) program, which is available to people who work full time for the federal government, a state or local government, or a qualifying nonprofit. There are also programs for specific professions, such as the Veterinary Medicine Loan Repayment Program (VMLRP), which offers up to $25,000 a year for veterinary professionals working in underserved areas.
