Janice Lozano
With rising student debt, loan repayment assistance is becoming an increasingly popular employee benefit. Companies are offering student loan repayment benefits to attract and retain employees. These benefits can speed up the payoff date and lead to less interest paid overall. While the Biden administration has yet to decide on broader student debt cancellation, borrowers can reduce or erase their debt by working for companies that offer student loan repayment assistance. This trend is expected to grow, with around 17% of employers currently offering student debt assistance and another 31% planning to offer it in the future.
| Characteristics | Values |
|---|---|
| Percentage of employers offering student debt assistance | 8% in 2020, 17% in 2023 |
| Percentage of employers planning to offer student debt assistance | 31% |
| Average student loan balance for borrowers from the class of 2023 | $29,374 |
| Number of companies that pay off student loans | Doubled between 2018 and 2019 |
| Student loan repayment amount | Up to $15,000 |
| Student loan repayment frequency | Monthly, annually, one-time |
| Student loan repayment eligibility | Full-time employees, part-time employees, tenure, income |
| Student loan repayment structure | Lump sum, matching contributions, reimbursement, direct payments to lenders |
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What You'll Learn
Student loan repayment assistance as a recruitment incentive
With rising student debt, loan repayment assistance is becoming an increasingly popular employee benefit. Companies are offering student loan repayment benefits to help borrowers pay off their debt and attract and retain employees. According to the Society for Human Resource Management, 8% of employers offered student loan repayment assistance in 2020, up from 4% in 2018.
Some companies that offer student loan repayment assistance as a recruitment incentive include:
- Google: The tech giant offers US-based employees up to $2,500 in student loan repayment annually.
- Hulu: The streaming company provides employees with up to $100 per month toward their student loans, up to a maximum of $6,000.
- Fidelity: Employees can receive up to $15,000 in student loan repayment assistance.
- Chegg: The education services company offers up to $5,000 annually in student loan repayment assistance for employees with at least two years of tenure.
- Connelly Partners: The advertising agency provides employees with up to $100 per month toward their student loan payments, along with a $1,000 signing bonus and a $1,000 cash bonus after five years.
- Estée Lauder: The global beauty product company contributes $100 per month toward employees' student loans, up to a maximum of $10,000.
- First Republic: This company initially offers $100 per month, increasing annually up to a cap of $200 per month, with no limit on the total repayment amount.
- PwC: Associates and senior associates can receive up to $1,200 per year for up to six years to repay their loans.
These companies demonstrate that student loan repayment assistance is becoming an attractive recruitment incentive for employers to attract and retain talent in a competitive job market.
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Tuition reimbursement programs
There are a variety of ways in which companies structure their tuition reimbursement programs, with some offering full or partial tuition coverage. For example, Amazon covers tuition and fees for front-line employees after 90 days of employment, while Apple offers full-time employees up to $5,250 annually in education expenses, including tuition. Similarly, AT&T provides part and full-time employees with tuition assistance of up to $5,250 per year as long as they have worked for the company for at least six months.
Some companies also offer student loan repayment assistance in addition to tuition reimbursement. For instance, Chegg offers employees up to $6,000 per year in student loan repayment assistance, with an additional $1,000 annual cash grant available to all employees with student debt. Clayco, a construction engineering company, offers a unique plan where employees can choose to receive a $100 monthly payment toward their student loans, increasing by $50 each year up to a maximum of $250 per month in the fourth year.
Overall, tuition reimbursement programs provide a valuable opportunity for employees to further their education and advance their careers, while also offering benefits that can help companies attract and retain talented employees.
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Student loan refinancing assistance
Some companies that offer student loan refinancing assistance include:
- Chegg: Chegg offers employees up to $6,000 per year in student loan repayment assistance. All employees with student debt are eligible for a $1,000 per year repayment assistance. Additionally, employees who have been with the company for at least two years are eligible for up to an additional $5,000 per year.
- Clayco: Clayco offers student loan repayment assistance to employees who make at least the minimum payment each month. Employees can choose to participate in one or both plans. In the first plan, Clayco pays $100 per month towards 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. In the second plan, employees can direct their 401(k) contribution to their student loan debt, and Clayco will continue to match that contribution.
- Fidelity: Fidelity offers employees a student loan repayment benefit with a lifetime maximum of $15,000.
- Aetna: Aetna helps employees by matching their student loan payments. For full-time employees, Aetna will match up to $2,000 per year in student loan payments, for a lifetime maximum of $10,000. For part-time employees, the company will match up to $1,000 per year, with a lifetime maximum of $5,000.
It is important to note that eligibility for student loan refinancing assistance may vary by lender, and factors such as credit score, credit history, proof of income, and debt-to-income ratio may be considered. Additionally, refinancing federal loans with a private lender may result in the loss of eligibility for loan forgiveness programs.
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Student loan repayment as a retention incentive
Student loan repayment assistance is becoming an increasingly popular employee benefit. According to the Society for Human Resource Management, the number of companies that pay off student loans doubled from 4% in 2018 to 8% in 2019. In 2024, about 36% of employers offered student loan repayment assistance, according to a report by the Employee Benefit Research Institute. This benefit can help employees pay off their student loans faster, but program structures vary across companies.
Some companies that offer student loan repayment assistance include:
- Google: US-based Google employees can receive up to $2,500 in student loan repayment annually.
- Hulu: Hulu offers employees up to $100 per month toward their student loans, up to a maximum of $6,000.
- Chegg: Chegg offers employees up to $6,000 per year in student loan repayment assistance. This includes a $1,000 annual cash grant available to all Chegg employees with student debt.
- Fidelity: Fidelity offers employees a student loan repayment benefit with a lifetime maximum of $15,000.
- Connelly Partners: Connelly Partners provides employees with up to $100 per month toward their student loan payments, in addition to a $1,000 signing bonus and a $1,000 cash bonus after five years that can be used toward student loans.
- Estée Lauder: Estée Lauder contributes $100 per month toward employees' student loans, capping out at $10,000 in total student loan repayment.
Student loan repayment assistance can be a valuable tool for companies to attract and retain employees, especially in a competitive job market. It can also help employees save money on interest and speed up their payoff date.
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Student loan repayment assistance for part-time employees
With student debt on the rise, loan repayment assistance is becoming an increasingly popular employee benefit. According to U.S. News data, 59% of college graduates from the class of 2023 took on student debt, with an average loan balance of $29,374. To attract and retain employees, companies are implementing programs to help pay off student loan debt.
Student loan repayment assistance can take various forms, such as recurring payments directly to lenders or contributions towards retirement savings. Some companies offer a specific dollar amount per year or month to help with loan repayment, while others provide a percentage of the employee's salary or a lump-sum payment after a certain period. For example, Chegg, an educational services company, offers its employees up to $6,000 per year in student loan repayment assistance, with an additional $1,000 annual cash grant available to all employees with student debt.
Part-time employees often have different eligibility requirements and benefit structures compared to full-time employees. For instance, at New York Life, 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. Similarly, at Aetna, a healthcare company, part-time employees can receive up to $1,000 per year with a lifetime maximum of $5,000.
It's important to note that eligibility for these benefits may depend on factors such as tenure, position, or the employee's contribution to their 401(k). Additionally, some companies may require employees to be employed for a set number of years before becoming eligible for student loan repayment assistance.
If your target employer does not offer direct student loan repayment assistance, it is worth inquiring about financial wellness benefits. These benefits can include services like no-cost consultations with financial professionals and debt management tools that can aid in creating a personal student loan repayment plan.
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Frequently asked questions
Some companies that offer student loan repayment assistance include Google, Nvidia, Hulu, Chegg, Connelly Partners, Clayco, Fidelity, New York Life, and Estée Lauder.
The structure of student loan repayment assistance programs varies across companies. Some companies offer a monthly contribution toward student loan payments, while others provide an annual lump sum or a reimbursement program. Some companies also offer tuition reimbursement options for employees who are still in school or planning to pursue further education. Additionally, some companies require employees to work a minimum number of hours per week or be employed for a certain number of years before becoming eligible for the benefit.
Student loan repayment assistance can help attract and retain employees, especially in a competitive job market. It can also help employees pay off their student loans faster and reduce the overall interest paid. According to data, around 17% of employers currently offer student debt assistance, and 31% plan to offer it in the future.
