- The federal government’s new student loan repayment system, while simpler, may cost some borrowers more.
- The One Big Beautiful Bill Act included a provision to exempt employer student loan benefits from taxation, with adjustments for inflation starting in 2026, changes which should lead more companies to offer workers support in paying off education debt.
- Nvidia, Estee Lauder, Fidelity Investments, New York Life, Peloton, SoFi and United Talent Agency are among companies that already offer workers a student loan reimbursement benefit.
The workplace is a smart location to look for debt repayment assistance as the Trump administration and Congress limit alternatives for student loan payback and forgiveness. Employers are increasingly offering student debt repayment advantages, particularly in view of the recently passed One Big Beautiful Bill Act’s provisions that may increase the program’s financial appeal.
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Many businesses have been considering student loan repayment programs for a while, but they have chosen to wait and see. According to workplace savings experts, however, more are prepared to take immediate action because the One Big Beautiful Bill Act permanently exempts these kinds of payments, with inflation adjustments beginning in 2026. Additionally, it is acknowledged that although while the federal government’s new loan repayment system is simpler, certain borrowers may pay more for it.
“Employers are feeling a lot more certain and confident right now about providing the benefit,” stated Allison Brecher, general counsel at Vestwell, a financial technology company that specializes in investment and savings plans for both individuals and corporations. The CARES Act included the tax-free benefit for student loan repayment. From March 27, 2020, until December 31, 2025, it permitted employers to make tax-free contributions of up to $5,250 toward an employee’s student debt.
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The largest obstacle to adoption for employers has been eliminated by making the tax-free status permanent, according to Laurel Taylor, co-founder and CEO of Candidly, a company that offers financial health benefits to businesses. Taylor remarked, “The fear was offering it and pulling it back,”
Indeed, in the face of skyrocketing student loan debt, employers have been favoring student loan repayment for a number of years. According to a report from The Brookings Institute, the number of Americans with federal student loan debt more than doubled from 21 million to 45 million between 2000 and 2020, making the stakes particularly high. From $387 billion, the total amount due more than doubled to $1.8 trillion.
“Employers know this is an area that’s crippling the workplace,” Taylor stated.
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Currently, a tiny but increasing portion of businesses provide student loan debt reduction. According to a survey conducted in 2024 by the International Foundation of Employee Benefit Plans, a nonprofit organization with 31,000 employer members, 14% of businesses surveyed provided a repayment plan. In comparison, just 4% of businesses surveyed in 2019 provided the perk. An further 18% of businesses were thinking about implementing a debt repayment program as of 2024.
Estee Lauder, Everest Global Services, Fidelity Investments, Nvidia, New York Life, Peloton Interactive, SoFi, and United Talent Agency are among the companies that provide student loan repayment. Each company has different eligibility requirements and benefits.
For instance, Nvidia provides $350 per month for student debts, up to a lifetime maximum of $30,000, to U.S. employees who have graduated within the last three years and work 20 hours or more each week. In contrast, New York Life limits the payout to $170 each month, or $2,040 annually, with a five-year maximum of $10,200. All current full-time and benefits-qualified part-time non-officer workers are eligible for the perk.
Although companies have expressed excitement about the inflation adjustment they will be able to pass on to employees, Taylor said she has not yet heard anyone say they want to boost the loan repayment perks they already offer. Any increases that are calculated will be rounded to the closest multiple of $50.
Obtaining assistance from an employer is crucial for a lot of student loan borrowers. Following a five-year halt due to the epidemic, the Trump administration resumed collecting on delinquent student loan debt in May. Many borrowers are unhappy to learn that the administration plans to resume income garnishment later this summer.
According to Amy Vaillancourt, president of wealth solutions at Voya Financial, whose products include the ability for employers to repay student loans, “we’re starting to see increases in employers’ interest in student loan services, especially with the federal options potentially changing.” According to a Voya study conducted in August of last year, 42% of workers are more inclined to stick with their company if they are given help repaying their student loan debt.
According to survey data from the International Foundation of Employee Benefit Plans, firms mostly mention these advantages as a means of attracting talent (92%) and retaining employees (80%).
“Benefits are a great attraction and retention tool,” said Julie Stich, vice president of content for the company.
About 58% of respondents stated that they wanted to maintain or improve employee loyalty and satisfaction, while 14% stated that they wanted to maintain or improve productivity.
According to Stich, “employees who are struggling under the weight of student loans may be distracted at work,” especially if they are having trouble paying their expenses or have their earnings withheld. “There are employers who recognize that helping this way might be able to help employees with their productivity,” she stated.
According to Paulette Olin, senior vice president of global human resources operations and benefits at Everest Global Services, it can be a useful tactic for hiring recent graduates who are probably in debt from student loans, even though it’s not a benefit that works for everyone. The benefit, which pays $150 per month for two years, $200 per month for years three through five, and a lump sum of $3,000 at the conclusion of year five, is utilized by about 8% of the company’s qualified employees. The maximum contribution amount is $13,800.
Currently, 14% of United Talent’s eligible population is enrolled in the program. There is no time or quantity limit on the company’s direct contributions to employees’ student loans, which are $50 per month. Vice President of Benefits Lucy Avsharyan said, “This program has been particularly meaningful for those early in their careers, such as assistants, who often carry the student debt while earning on the lower end of the pay scale.” “Supporting them at this critical stage helps ease their financial burden,” she stated.
In other ways, employers are also contributing to the cost of education. Depending on the business, some provide tuition reimbursement that can be applied to graduate or undergraduate courses. Additionally, many employers are opting to match employee contributions to 401(k) plans as they pay down student loans.
Brecher expressed her hope that more companies will provide student debt borrowers with assistance in the form of reimbursement, 401(k)-matching, or both. Employers may still decide to make larger contributions, but tax deductibility is restricted. “A lot of workers who have student loans are anxious because they can’t advance their savings,” she said. “It’s very hard to do that when you’re on that hamster wheel of student loan debt.”
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