Why Companies Are Paying Employee Student Loan Debt
With student loan debt at an all-time high, it’s no wonder that employers who want to recruit and retain the best employees are offering student loan repayment benefits. The default rate of those with student loan debt is around 10%, so the incentive to help employees stay on top of their student loan payments is strong. While health insurance and 401Ks have been the standard in employee benefits, companies that will help pay off their employee’s student loan debt are in high demand.
Should Your Employer Be Paying Off Your Student Loan?
If employers are fiscally able to offer student loan repayment employee benefits, then it’s is a huge added value. CNBC reports that companies paying off student loans for employees “dropped to 53 percent in 2017, from 61 percent in 2013, according to the Society for Human Resource Management.” But this could soon change, with employers vying for potential candidates. Employers offering student loan repayment benefits stand out from their competitors. Companies don’t want their employees to default on a student loan, as it leads to increased employee stress and decreases productivity. Plus, if companies are offering to help with student loan debt, then employers will have more money to invest in their 401K retirement plans.
Another incentive for companies to offer a student loan repayment perk is to help the bottom line of the federal government. With the default rate so high among federal student loans, the government loses money it had counted on being paid back. Although companies paying off student loan debt won’t make the most significant dent in the money lost to people defaulting on federal student loan payments, it does make a dent.
One of the areas of focus in my debt relief law firm is student loan debt help. For those with federal student loans, I often help navigate through student loan forgiveness programs. Although anyone can get into one of these programs themselves, maneuvering through the process can be complicated. Companies that offer student loan forgiveness help are also very appealing to potential employees.
Companies That Pay Off Student Loans for Employees
If you are looking for a list of what companies will pay off student loans, Debt.org has complied the below list of some of them:
- Fidelity — $2,000 per year for up to five years
- Aetna — $2,000/year up to $10,000 total
- Kronos — $500 per year
- Nvidia — $6,000 per year and up to $30,000 total
- Penguin Random House — $1,200 per year and up to $9,000 total
- Pricewaterhouse Cooper (PWC) — $1,200 per year for up to six years
- Chegg — $1,000/year with no cap
- Staples — $1,200 per year for three years and up to $3,600 total
- First Republic Bank — $100 per month in the first year, $150 the second year and $200 each year after that until the loan is paid off
- BP3 Global — $1,200 per year
- ChowNow — $1,000 per year
- CommonBond — $1,200 per year until the loan is paid off
- Connelly Partners — $1,000 signing bonus paid toward student loans, $100 per month and an extra $1,000 after five years of working with the company
- LendEDU — $2,400 per year
- Natixis — $1,000 per year and up to $10,000 over 10 years
- Powertex Group — $1,200 per year for up to six years
- SoFi — $2,400 per year
- io — $1,200 per year
- Gradifi — $3,000 per year and up to $10,000 total
- Martin Health Systems — $2,000 per yea
But this list could grow rapidly with companies like Gradifi helping companies design student loan repayment benefit programs for employers. With inflation and student loan debt on the rise, it’s a huge asset for companies to offer help paying student loan debt.
Helping Employees With Student Loans In Default
There are options for companies who want to help employees whose loans have fallen into default. Recently, I have had a flurry of companies asking me to help them with their employees’ student loan debt that has fallen into default. If their employees have defaulted on their federal student loans and are being sued by a debt collector, I offer to help get them in a student loan rehabilitation program. For private student loans, I usually recommend a debt settlement.
If you have any questions regarding student loan debt relief, give me a call at 858–217–5051 or email me at daniel@gamezlawfirm.com. I offer a free debt relief consultation to individuals and employers. As you can see from my student loan debt relief success stories, I have years of successful experience getting people out of student loan debt and onto financial freedom.
Story originally published on GamezLawFirm.com. Daniel R. Gamez is an attorney serving clients nationwide and focuses exclusively in debt relief. He is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in San Diego and Los Angeles, and helps people with debt problems all over the country. For more information, please contact Daniel Gamez at 858–217–5051, daniel@gamezlawfirm.com or use our online contact form. Stay updated about the latest debt relief tips by following on Facebook and Twitter and read about client success stories on our website.
