Student loan repayment can be a daunting task, especially for those who are struggling to make their monthly payments or pay off their loans quickly. That's where student loan repayment benefits come in handy.
Employer student loan repayment benefits have become increasingly popular over the years and are tax-free through 2025, incentivizing employers to offer this benefit even more.
In this article, we'll discuss what an employer student loan repayment benefit is, where to find employers with student loan repayment benefits, how much money you can save by using employer student loan repayment, and which companies are hiring with student loan repayment benefits.
What is an employer student loan repayment benefit?
An employer student loan repayment benefit is a type of benefit provided to help employees pay off their student loan debt. This benefit works by offering a contribution to the employee’s student loan payment, either in the form of a one-time bonus or as a recurring monthly payment. The goal of this benefit is to reduce the financial burden on employees who are struggling to repay their student loans, and help them get ahead financially.
The average student loan debt in the US is currently over $30,000, and many employees are making payments on their loans for years or even decades after they have completed their education. This can be a significant financial burden and can make it difficult for employees to save for other financial goals, such as buying a house or saving for retirement.
Where to find employers who provide student loan repayment benefits
Dwindle of course! Dwindle was created to help spread awareness about employers who are offering life changing student loan repayment benefits. Let's take a look at my own example. I started working for Chegg in 2020 and have received $1,000 per year towards my student loans. In 2023, I'm set to receive an additional $5,000, on top of the annual $1,000, bringing my total student loan repayment benefit to $6,000 for 2023.
This is huge in terms of me being able to pay off my student loan sooner rather than later. Federal student loan interest rates are currently paused at %0 so all of this will go directly towards my principal balance. But what about when interest rates return? Let's take a look at an example below.
How much money can be saved by using employer student loan repayment?
The amount of money that can be saved by using an employer student loan repayment benefit varies depending on the terms of the benefit and the amount of student loan debt the employee has. However, even a small contribution from the employer can make a significant difference in reducing the overall cost of the loan.
For example, if an employer offers a monthly contribution of $100 towards an employee's student loan payment, and the employee has a loan balance of $30,000 with an interest rate of 6%, over the course of 10 years, the employee could save over $3,000 in interest charges, and pay off their loan almost 3 years earlier. This can greatly accelerate the time it takes to pay off the loan and reduce the financial burden on the employee.
It's important to keep in mind that not all employer student loan repayment benefits are the same, and the amount of money saved will vary based on the specific terms of the benefit. However, any contribution from the employer can help employees pay off their student loan debt faster and at a lower cost, making it a valuable and attractive employee benefit.
Check out some free student loan repayment calculators below to get an idea of how much money you could be saving with an employer student loan repayment benefit:
Highway Benefits Student Loan Repayment Calculator
Student Loan Planner Student Loan Repayment Calculator
EdFinancial Student Loan Repayment Calculator
Companies that are hiring with student loan repayment benefits
More and more companies are starting to offer student loan repayment benefits to their employees as a way to attract and retain talent. Here are a few examples of companies that are hiring with student loan repayment benefits:
Fidelity Investments: Fidelity offers a student loan repayment program that contributes up to $15,000 in contributions to employees' student loans.
Aetna: Aetna's student loan repayment program provides $2,000 per year (up to a maximum of $10,000) to employees' student loans. The program is available to full-time employees who have been with the company for at least one year. For part-time employees, Aetna will match up to $1,000 a year with a lifetime maximum of $5,000.
PwC: PwC's student loan repayment program provides up to $1,200 per year (up to a maximum of $10,000) to employees' student loans. The program is available to full-time employees who have been with the company for at least one year.
If you are interested in negotiating for student loan repayment benefits during the job search process, it's important to do your research and understand the market rate for these benefits. As you can see from the above, each company is different in how they offer these benefits. You can get a breakdown of each employer's student loan repayment benefit on their dedicated company page.
Final Thoughts
Student loan repayment benefits offered by employers can be a game-changer for employees struggling to pay off their student loans. With the average student loan debt in the US being over $30,000, these benefits can help employees reduce their financial burden, improve their overall financial stability, and achieve peace of mind.
With the rise in popularity of this type of benefit, it's becoming easier to find employers who offer student loan repayment benefits, and many are even tax-free through 2025. With Dwindle, finding these employers is now easier than ever.
So, if you're struggling with your student loan debt, consider searching for employers with student loan repayment benefits and see how they can help you achieve financial freedom.
