Only about 4% of companies offer employer-sponsored student loan repayment benefits, according to the 2018 Employee Benefits Report, a survey by the Society for Human Resource Management (SHRM).
Student loan borrowers who get an employer’s student loan repayment benefit, and can make extra payments, will pay off their debts faster and pay less in interest.
Consider this: A student loan borrower with $27,000 in loans at an interest rate of 5% who pays $286 a month will be debt-free in 10 years and pay $7,320 in interest. But with $100 a month from an employer’s student loan repayment benefit added to the loan payment, the borrower shaves off over three years of payments and saves $2,282 in interest.
Employers are increasingly responding to the needs of an indebted workforce by offering student loan repayment as a benefit. Employers that offer the benefit often use companies like IonTuition or Gradifi, and offer a monthly benefit — typically about $100 — over a certain number of years, or up to a lifetime maximum.
Here’s what student loan repayment benefits look like at 10 major U.S. companies:
Benefit details: Full-time employees: match up to $2,000 per year, with a $10,000 lifetime maximum. Part-time employees: match up to $1,000 per year, with a $5,000 lifetime maximum.
Industry: Marketplace lending
Benefit details: $1,200 per year, until the loan is paid off.
Industry: Skin care and makeup
Benefit details: $100 per month, with a lifetime maximum of $10,000.
Industry: Financial services
Benefit details: $2,000 per year, with a lifetime maximum of $10,000.
Industry: Events promotion
Benefit details: $100 per month, or $1,200 per year, with a lifetime maximum of $6,000.
Natixis Global Asset Management
Industry: Asset management
Benefit details: $1,000 annual benefit — up to $83.33 per month, for a lifetime maximum of $10,000 over 10 years.
Benefit details: Recent graduates (within the last three years) can apply for reimbursement of $6,000 each year to help repay student loans, up to $30,000.
Penguin Random House
Benefit details: $100 per month, up to $9,000 for up to 7.5 years.
Industry: Professional services
Benefit details: $100 per month, or $1,200 per year, for up to six years.
Industry: Office supply retail
Benefit details: $100 per month for 36 months.