According to a survey from the Employee Benefit Research Institute, 17% of large employers offered student loan assistance as a benefit in 2021, with another 31% of employers saying that they were planning to offer the benefit in the future. Other financial wellness perks that are more popular with employers include financial planning education (55%), employee discount programs (50%), and tuition reimbursement (43%). But with employers still struggling to differentiate themselves from their competitors in order to hire skilled workers, student loan assistance may continue to gain in popularity. Interested in finding an employer who will help pay off your student loans? Here’s what you need to know.
How Does Student Loan Assistance Work?
Employer-sponsored student loan repayment programs typically work through employer matching or direct payment programs.
Employer match: Companies match employees’ monthly student loan payments up to a set amount. For example, Google contributes up to $2,500 each year per employee in matching contributions.Direct payment: Employers make payments directly to the loan servicer. For example, NVIDIA pays up to $500 per month directly to student loan providers for employees who work 20 hours per week or more.
Some employers are also experimenting with other ways to provide student loan assistance, such as converting paid time off (PTO) to a cash benefit that can be used for student loan repayment, retirement planning, or other purposes. But for now, you’re more likely to see programs that use a match and/or direct payment approach.
Student Loan Repayment vs. Tuition Reimbursement
If you’re fortunate enough to be in the top-paid demographic of workers, you’ll be more likely to come across employers who offer student loan assistance. But regardless of how much you earn and what sector you work in, you can find companies that offer this benefit. Below are a few tips.
Target Large Employers
Large employers are more likely to offer financial wellness benefits, including student loan repayment programs. According to the Employee Benefit Research Institute, 72% of firms with 10,000 or more employees offered some kind of financial wellness program in 2021, compared with 44% of employers with 2,500 to 9,999 employees and 41% for those with 500 to 2,499 employees.
Use Keywords on Job Search Sites
Indeed, Monster, LinkedIn, and other job search sites let you use keywords to refine your search. Add “student loan repayment” or “student loan assistance” to your searches to see employers that offer this benefit.
Try Goodly’s Free Jobs Finder Tool
Student loan benefits provider Goodly has a free tool that indexes employers who offer student loan repayment. Employers do not have to be Goodly clients in order to be included. Each listing shows how many open jobs the employer is currently hiring for and offers links to apply. Once you identify employers that offer this benefit, you’ll be able to target jobs at these companies. Check in frequently for new openings or set up job alerts to notify you when new positions become available.
Can You Negotiate Student Loan Repayment?
Typically, non-salary compensation is determined before you negotiate a job offer. An employer might offer you a choice of health insurance programs, for example, but they’re unlikely to change the terms of the individual choices offered. In reality, once contracts are set with various benefits providers, there’s rarely much wiggle room. However, there’s always the possibility that a potential employer isn’t aware that they can offer a tax-free student loan repayment benefit of up to $5,250. In that case, if negotiations are proceeding well, you might mention it as an option. Most of the time, you’ll be better off negotiating more flexible perks such as paid time off, telecommuting privileges, or an expedited performance review (which will hopefully lead to a raise). Although more than half of candidates accept job offers without negotiating, studies show that those who ask tend to get a higher salary. Fidelity Investments reported that 87% of professionals who negotiate job offers get higher pay or better benefits.
