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Two-thirds of Millennials say they want their companies to help them pay down their student debt. Check out this list of 31+ companies that offer an employer student loan repayment program as an employee benefit.

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Employer student loan repayment programs
College graduation is a huge milestone, but paying off student debt is an even greater relief.

Employer student loan repayment programs are the hottest new employee benefit craze in America.

Two-thirds (66%) of Millennial employees want their companies to help them pay down their student debt, according to a 2020 survey of 5,400 American households. Just one-quarter of those same employees think employers should help them save for retirement with matching contributions to 401(k)s. This survey was conducted by data and analytics firm Hearts and Wallets.

Make no mistake… this isn’t just a Millennial issue. Across all age groups, 39% of people think that employers should help pay off student debt, while only 25% think that companies should contribute to employees’ 401(k)s.

Employer Student Loan Repayment Programs:

A Timely Benefit

This benefit’s time has come. On average, college grads now have $37,000 in student debt.

In fact, student loans have become the chief financial disruptor among Americans at large. Not just for young people. Student loans are viewed as a greater disruptor than job loss or reduced pay, a Harris Poll of 1,000 people conducted on behalf of TD Ameritrade found.

Millennials are the most disrupted generation ever.  They’re caught between paying off their past, contributing toward their retirement, and saving for their children’s college. This delicate 3-way balancing act causes worry and stress about a sharp cost of living increase.

Due to their money stress, they delay home purchases, marriage, and starting families.

For many, the stress about repaying student loans means it’s all about the “now.” How do I repay my student loans and cover my living expenses now? Retirement is far beyond some distant horizon.

To the Rescue — Employer Student Loan

Repayment Programs

Companies have started to offer employer student loan repayment programs – a benefit Millennials and others are going nuts for.

Human resource professionals see these benefits as a key recruiting and retention tool. For them, it’s all about attracting and retaining talent.

Fidelity estimates that employers offering student loan repayment programs get a 75% decrease in turnover. What’s more, half of recent hires note that employer student loan repayment programs were a deciding factor in accepting a job offer.

American Student Assistance (ASA) did a survey a few years ago. 76% of respondents said that, all else being equal, they’d choose a job offer that came with an employer student loan repayment program as opposed to one that did not.[i]

A Manpower survey further found that six of ten adults with student debt would switch jobs in order to get in on an employer student loan repayment program.

Government Now Encourages Employer Student Loan Repayment Programs

Visionary employers had already started offering such assistance prior to 2018.

But in 2018, an IRS ruling made it easier. It opened the door for employers to start helping workers with their student loans indirectly. Under that ruling, an employer could “match” an employee’s student loan payments via an equal contribution to the employee’s 401(k) – without the employee contributing anything directly to their retirement account.

Now companies and employees get an even bigger benefit in the form of a tax cut for employer and employee for student loan repayments. It’s good through 2025 for up to $5,250 per year.

Still, after 2020’s pandemic and with current business uncertainty, some companies may be reluctant to commit new benefit funds to employer student loan repayment programs.

But other companies are finding a way. Some companies are converting unused PTO to student loan relief. This gives employees what they really want, and gets unpaid PTO off the company’s books.

Thinking of a New Job in 2021? Consider These Employers

Employer student loan repayment programs
If you’re thinking about a new job, check out employers with student loan repayment programs below.
If you’re thinking about finding a new job in 2021 and have student debt, check out companies with an employer student loan repayment program. As long as other factors are a good fit, it can be a huge benefit.

There are plenty of ways to pay off your debt faster.

But one of the best is to get someone else to help you do it. With that said, here’s our list of 31+ companies that offer student loan repayment programs as an employee benefit. This can speed up your repayment process, cutting a typical 10-year repayment by about three years.

Keep in mind that more companies are jumping on this bandwagon all the time. Companies may also change their benefit details. In addition, some employers don’t publicly advertise the details of their student loan repayment programs. So you may not know specific details till you get a job offer.

Naturally, be sure you know what the benefits are and have them in writing before you accept any job.

1. Aetna

Industry: Insurance

Benefit: Full-time employees receive a match of up to $2,000 per year, with a $10,000 lifetime cap. Part-time employees receive a match of up to $1,000/year, with a $5,000 lifetime cap.

2. Andersen Tax

Industry: Tax firm

Benefit: Full-time employees receive $100/month for 60 months, plus a $6,000 lump-sum after 5 years. Cap of $12,000.

3. Carhartt

Industry: Clothing retailer

Benefit: $50/month with a lifetime max of $10,000.

4. Carvana

Industry: E-commerce/automotive

Benefit: $1,000/year. No details on lifetime cap.

5. Chegg

Industry: Educational services

Benefit: $1,000/year, beginning after 2 years with the company. No lifetime cap. Also offers continuing education funds.

6. Children’s Hospital & Medical Center, Omaha, NE

Industry: Healthcare

Benefit: Up to $10,000 over a 5-year period.

7. ChowNow

Industry: Online food ordering

Benefit: Up to $10,000 over 5 years.

8. City of Memphis

Industry: Public service/government

Benefit: $50/month toward principal.

9. CommonBond

Industry: Financial services

Benefit: $100/month till loans are paid off.

10. Connelly Partners

Industry: Advertising agency

Benefit: Employees make payments from each paycheck. The agency adds monthly contributions towards the principal.

11. Coupa Software

Industry: Business software

Benefit: Monthly contributions to help pay down student loan principal. Also applies to Parent PLUS loans, and to student loans for employee’s spouse.

12. Crew Carwash

Industry: Carwash in Indiana

Benefit: $1200/year paid directly to the lender. Also offers tuition assistance, and has been named a “Top Small Workplace” by the Wall Street Journal.

13. Estee Lauder

Industry: International conglomerate

Benefit: $100/month up to a lifetime max of $10,000.

14. Fidelity Investments

Industry: Financial services

Benefit: Up to $2,000/year and $10,000 total paid directly to lenders. Also administers programs for over 25 other companies.

15. First Republic Bank

Industry: Financial services

Benefit: Tuition reimbursement, 529 college savings plans, and student loan repayment.

16. Freddie Mac

Industry: Financial services/mortgage

Benefit: Up to $9,000 over a 5-year period.

17. Gradifi

Industry: Student loan repayment program administrator

Benefit: $250/month, lifetime cap of $10,000.

18. Honeywell

Industry: Appliances

Benefit: $150/month up to a cap of $10,000 (for their Atlanta location).

19. Hulu

Industry: Entertainment

Benefit: Up to $1200/year.

20. Kronos

Industry: Software

Benefit: $500/year until employee’s loans are paid off.

21. Live Nation

Industry: Entertainment

Benefit: Matches $100/month up to a $6,000 lifetime cap. Also offers tuition reimbursement.

22. MidWestOne Bank

Industry: Financial services

Benefit: Up to $100/month.

23. Motus

Industry: Technology

Benefit: An early adopter of student loan benefits, they’ve offered these since 2014.

24. Natixis Global Asset Management

Industry: Financial services

Benefit: $5,000 after an employee’s 5-year work anniversary, then $1,000/year for the next 5 years.

25. Peloton

Industry: Fitness manufacturing

Benefit: $100/month.

26. Penguin Random House

Industry: Publishing

Benefit: $100/month with a lifetime max of $9,000.

27. Powertex Group

Industry: Advertising

Benefit: $100/month for up to 6 years.

28. PricewaterhouseCoopers

Industry: Professional services

Benefit: $1200/year with a $10,000 lifetime cap.

29. SoFi

Industry: Financial services

Benefit: $200/month, no lifetime cap.

30. Staples

Industry: Retail

Benefit: Offers qualifying, high-potential employees $100/month for a max of 36 months.

31. U.S. Government

Industry: Government

Benefit: Public Service Loan Forgiveness (PSLF), teacher loan forgiveness, and military loan forgiveness programs. In addition, the federal government offers employees up to $60,000 in loan repayment assistance – paid in $10,000 increments over six years. You must sign a contract agreeing to work for the government for at least three years.

Other companies that have student loan repayment programs:

  • ADP
  • HFL Bank of Topeka
  • National Grid
  • Luke’s Cornwall Hospital
  • Trilogy Foundation
  • Universal Music Group
  • Alternatives ABA
  • LendEDU

Does your employer offer an employer student loan repayment program? If they do, do you participate?

We’d love to include it in an updated version of this article, so please let us know if your employer starts a new program or you have further details on one of those on this list.

 

 

[i] https://file.asa.org/wp-content/uploads/2019/01/28203317/Life-Delayed-2015.pdf

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