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If you have student loans, consider looking for an employer to provide assistance to pay them back. Employers’ student loan repayment programs currently offering student loan repayments of up to $5,250 each year as employee tax-free benefits can be found through government agencies and private employers.
If your goal is paying off student loan debt, spend some time researching these employers. Consider all options to maximize your ability to pay off your debts in a way that works for your budget.
How to access your employer’s student loan repayment benefits
If you are working for an employer who provides student loan repayment assistance, here are some things you need to do:
- Check the timeline requirements: You may need to have it set up for your company before you can qualify. Some companies offer profits from the start.
- sign up: If you are qualified, be sure to consult with the HR department. They can help you sign up for any benefits program.
If your current employer is not offering student loan repayment benefits, here’s what you can do:
- Find a new job: Find a position with a company that provides student loan repayment assistance.
- Talk to HR: Consider making a suggestion to your HR manager. Try to highlight the benefits of the company. For example, employers who provide student loan repayment assistance can be exempt from the $5,250 limit. Providing these benefits also helps recruit, engage and retain employees.
- Research into government support programs: You may be able to access your student loan repayment assistance program through federal or state government agencies based on your career choices. For example, medical professionals, public advocates, military members, and STEM workers may be eligible.
Support for student loan repayments for 5 types of employers
Depending on your employer, there are several different types of support you may receive.
- Signature bonus: Some employers offer lump payments as a signature bonus when they first start.
- Repeat payments: Platforms like Gradifi allow employers to make payments directly to lenders on your behalf. These payments can occur monthly, annually, or at other intervals. Some companies may even offer lump payments after being hired for a set period. In some cases, employers can include assistance in their pay.
- Service-based support: If you are a military member or your career qualifies for a loan repayment assistance program offered by a government agency, you will generally receive an annual or lump sum payment after providing the necessary services and meeting other program requirements.
- I’m tied up Resignation savings: In some cases, you may offer to contribute to your retirement if your employer places a certain percentage of your salary on student loans instead.
- Trading unused vacation time: At least one company allows employees to apply unused paid leave to their student loans instead of carrying them through the next year.
Which companies pay off student loan debt?
More and more Private companies As we are beginning to offer student loan repayment assistance programs, it is not easy to provide a comprehensive list. Employers that offer student loan repayment benefits include companies such as Ally Financial, Chegg, Google, and Fidelity.
According to reports from International Foundation for Employee Benefits Planning (IFEBP), only 4% of companies offered student loan repayment benefits in 2019. In 2024, that figure rose to 14%.
How employer student loan repayment methods are taxable
Payments for student loan repayment assistance were subject to payroll tax because employees were considered taxable income. Part of the March 2020 Care Act Reliefs provided during the Covid-19 pandemic – Employers have allowed employers or employees to provide up to $5,250 in annual student loan repayment assistance without tax impact. The Integrated Budget Act has extended the tax cuts until 2025.
Please note that the $5,250 limit is a combination limit that also includes the employer’s offering Tuition Support Program. Many businesses also offer tuition rebates that are different from student loan rebates. Typically, a tuition support program will refund employees up to a certain amount after the employee completes coursework.
Certain government assistance programs that offer student loan repayment benefits do not require you to pay taxes. Check the program to see if taxes apply. This applies to the National Health Service Corps loan repayment program, which offers payments of up to $75,000 over two years.
Conclusion
Repayment of student loans can be overwhelming, so we recommend taking advantage of the available aid programs. If you are looking for a job and student loan debt is a concern, it can be beneficial to find an employer who will provide this benefit. If you are already working for an employer who offers this program, understand how the program works and maximize your profits.
Use bank rate Student Loan Calculator Employer assistance can help you speed up the repayment process and determine how much it can help you save interest.
