STUDENT LOAN CONTRIBUTIONS ARE NOW TAX FREE

IF YOU ALREADY:

Find out how you can add a Student Loan Repayment Program WITHOUT a significant increase to your current benefits budget.

Gain the competitive edge by offering your employees benefits they want.

How it works

• Empower employees to manage employer-matched funds to best fit their financial goals
• Funds can be directed to student loans, retirement savings, or a combination
• Compatible with all 401(k) and 403(b) retirement plans
• Companies can offer student loan repayment without a significant increase to their benefits allocation
• Implementation is simple and requires no changes to your retirement plan benefits

86%

of employees would stay with an employer for at least five years if they received help with student loan debt.

71%

of students are graduating with student debt. This burden creates workplace stress that negatively impacts productivity.

69%

of employees suffer from financial stress

72%

of employees are distracted by finances at work

76%

of employees cite student debt as leading cause of financial stress

51%

of debt holders say student debt is ruining their quality of life

HAPPY EMPLOYEES = HAPPY COMPANY

Rene Walker

“This program has drastically reduced my financial stress , and I am deeply grateful.”

Molly Dunn

“The result is a bigger payment from me that actually adds to principle.”

James Dixon

“I enjoy the fact that the company pays
on debts accrued before employment.
Most employers will pay for future
education but not prior education.”

help your employees dreams come to life

Offer employees a student loan repayment benefit using employer match funds — without a significant increase to your benefits budget.

3 EASY STEPS:

1. Employee Makes Their Election

Employee allocates matching dollars to a retirement plan, student loan repayment, or allocates a percentage toward both.

2. Allocation Amounts Get Processed

Your payroll deductions and employer match are computed and reviewed to ensuring elections follow benefits plan. You send payment for the cumulative amount, then we process and apply payments to each employee’s student loan.

3. Available Amount Is Same As Current Matching Dollars

Total amount available for employer match is governed by your company’s existing retirement plan. There’s no increase in terms of dollars currently allocated toward matching benefits unless you choose to increase it.

here's a Quick
Example

Let’s say you have $30,000 in student loan debt with a 10-year term and 6% interest rate. If you make your regular payments while your employer pays $100 a month, you would pay off your loans nearly three years faster and pay about $11,600 less over the course of the loan.

• Aetna offers student loan repayment assistance to employees with eligible loans that meet company guidelines. It will start providing a $2,000 annual match for employee student loan payments, maxing out the benefit at $10,000. To be eligible, employees must work at least 20 hours per week.

• Global asset management company Natixis offers workers $1,000 immediately to use toward student loan debt, along with $83.33 per month paid directly to the student loan servicer. The benefit maxes out at $10,000 over a 10-year period, as long as the individual is still an employee during the duration.

• PricewaterhouseCoopers’ student loan pay-down plan gives employees the chance to receive $1,200 a year toward student loan debt, up to $10,000. The company says the benefit helps shave up to three years off student loan repayment.

• Education technology company Chegg disburses up to $5,000 a year to entry-level and manager-level employees in the U.S. for student loan repayment, while more senior employees can receive up to $3,000 annually. As a separate benefit, employees can receive up to $1,000 per year in cash for debt repayment.

• Fidelity Investments offers a $2,000 reimbursement package distributed over five years to employees who pass the six-month mark at the firm. Employees can receive up to $10,000 per borrower toward student loan repayments.

Request a proposal today to find out if a Student Loan Assistance Program is right for your company.

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