With a median average sum of more than $20,000, student loan debt affects about one in five Americans. Thus, it should come as no surprise that an increasing number of businesses are offering student loan aid as a perk to draw in and keep workers.
In 2021, 17% of big employers provided student loan help as a benefit, and 31% of employers stated that they planned to provide the benefit in the future, according to a poll conducted by the Employee Benefit Research Institute.
Employers also favour financial planning education (55%), employee discount programmes (50%), and tuition reimbursement (43%), among other financial wellness benefits. “2021 EBRI Financial Wellbeing Employer Survey: Focus on COVID-19 and Diversity Goals,” Employee Benefit Research Institute.
But student debt aid may continue to grow in popularity as long as companies are unable to set themselves apart from rivals in order to attract qualified personnel.
Are you looking for a job that would assist you in repaying your school loans? What you should know is as follows.
Important Notes
- Employers are permitted to provide up to $5,250 in annual tax-exempt payments per employee towards tuition aid or student debt repayment.
- Employees in management positions and those with higher incomes are more likely than those with lower incomes to get perks related to loan repayment.
- Employers with a larger workforce are more likely to provide student loan payback as a benefit; try searching for these companies using keywords on job search engines.
How Does Assistance for Student Loans Operate?
Programmes for employer-sponsored student debt repayment usually operate via direct payment or employer matching.
- Employer match: Up to a predetermined level, businesses will match employees’ monthly student loan payments. For instance, Google matches employee donations up to a total of $2,500 annually.
- Direct payment: Employers pay the loan servicer directly. For instance, NVIDIA pays student loan providers directly up to $500 a month for staff members who put in at least 20 hours a week
Other strategies that some employers are experimenting with to help with student loans include turning paid time off (PTO) into a cash reward that can be utilised for retirement planning, student loan repayment, or other objectives. However, for the time being, programmes that employ a match and/or direct payment strategy are more common.
Take Note
Employers are exempt from paying taxes on $5,250 annually that they donate towards an employee’s tuition assistance or student loan repayment through 2025.5.
Repayment of Student Loans vs Tuition Reimbursement
| STUDENT LOAN REPAYMENT | TUITION REIMBURSEMENT |
|---|---|
| Can be paid by pay period, monthly, quarterly, etc. | Typically paid in a lump sum |
| Does not require the degree to be related to the job | Degree or certification usually related to job duties |
| Tax exempt up to $5,250 per year | Tax exempt up to $5,250 per year |
How to Locate Companies That Help With Student Loans
Assistance with student loans is not a typical benefit for employees. By the start of 2022, only 4 percent of workers in the private sector were eligible for this benefit, according to the Bureau of Labour Statistics. Higher paid employees have a higher chance than lesser paid employees of receiving student debt assistance from their employers. Additionally, loan payback is most likely to be a benefit for 7% of workers in managerial positions.
Employers who help with student loans are more likely to be found if you are among the fortunate few who earn the highest wages. But there are businesses that provide this perk, regardless of your income and industry. Here are some pointers.
Aim for Big Employers
Offering financial wellness benefits, such as student loan repayment plans, is increasingly common among large businesses. The Employee Benefit Research Institute reports that in 2021, 72% of companies with 10,000 or more workers provided some form of financial wellness programme, compared to 44% of companies with 2,500 to 9,999 workers and 41% of companies with 500 to 2,499 workers.2.
Employ Keywords on Job-Seek Websites
You can use keywords to narrow down your search on Indeed, Monster, LinkedIn, and other job search engines. To find companies that provide this benefit, add the terms “student loan assistance” or “student loan repayment” to your search terms.
Use the Free Job Finder Tool on Goodly.
Benefits provider for student loans A free service from Goodly lists companies that provide student loan repayment. To be featured, employers do not need to be Goodly clients. Every job listing provides links to apply and indicates the number of open positions that the company is presently hiring for.
You can target positions at these companies once you’ve identified which ones provide this perk. To be notified when new roles become available, set up job alerts or check in periodically for new openings.
Take note
You can be eligible for the Public Service Loan Forgiveness Programme (PSLF) if you work for a non-profit organisation or a local, state, federal, or tribal government. For information on how to apply for loan forgiveness under this programme, contact the Office of Federal Student Aid.
Can Student Loan Repayment Be Arranged?
Non-salary remuneration is usually decided upon prior to accepting a job offer. For instance, your employer may provide you with a selection of health insurance plans, but they probably won’t alter the specifics of those options. In actuality, there is rarely much leeway once agreements are made with several benefit providers.
But there’s always a chance that a prospective employer isn’t aware that they can provide up to $5,250.5 in tax-free student loan repayment benefits. Then, if talks are going well, you could bring it up as a possibility. Negotiating additional flexible benefits, such paid time off, the ability to work from home, or an accelerated performance review (which should result in a raise), will usually be in your best interest.
Take note
Remember to haggle over your pay. It’s the component of your pay that you can use right now.
Studies indicate that candidates who inquire about salary likely to receive a higher offer, even if over half of candidates accept job offers without haggling. According to a study by Fidelity Investments, 87% of professionals who haggle over job offers receive greater compensation or benefits.
Answers to Common Questions (FAQs)
Which benefits are most often offered to employees?
Health insurance, employee assistance programmes, life insurance, short- and long-term disability, and wellness initiatives are a few of the most popular benefits offered to employees.
Is your employer able to settle your education debt?
Repayment of student loans is a perk that employers can provide to their staff. Employers may contribute to employee student debt repayment by making yearly, tax-exempt payments of $5,250 per employee.
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