Frequently Asked Questions

Tax-Free Benefits

Yes, and we recommend also providing it to employees. It will help them fully understand how their distribution might affect their employer match contributions between retirement plans and student loan debt repayments. There are different tax consequences for each.

Program Implementation & Integration

Any employee can be eligible. We’re happy to help with questions related to their student loans – and to help them balance student loan repayment with their other financial goals and needs.

For employers who partner with BenefitEd to offer one or more of our programs, Support Solutions is free to their employees. This service also available at a nominal fee for other employers who wish to provide this valuable service at no cost to their employees.

Nelnet Bank’s mission is to help families achieve their dreams with financial knowledge and access to education. For employees who can benefit from student loan refinancing, working with a trusted partner like Nelnet Bank can save them money in interest over time and simplify student loan repayment.

Yes, and we recommend also providing it to employees. It will help them fully understand how their distribution might affect their employer match contributions between retirement plans and student loan debt repayments. There are different tax consequences for each.

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. These qualified tuition plans are sponsored by states, state agencies, or educational institutions and receive tax benefits under Section 529 of the Internal Revenue Code. Learn more about 529 college savings plans.

Employees must open a 529 plan before this benefit can be applied. Employers can offer their contributions to all or any specific subset of employees.

By investing in their employees’ growth and development, employers can help increase retention and reduce turnover. This benefit also helps employers promote more talent from within, instead of outside talent – helping their bottom line.

BenefitEd acts as a third-party administrator of the program, freeing up valuable company time. Employers can be confident their tuition reimbursement program will be handled smoothly, while employees can focus on more important work.

Employers can choose their own criteria to determine which employees are eligible.

You can change or amend a program with us as often as you would like.

The hours vary from fully automated programs to about one hour per month.

Some employers have reduced their turnover rates by over 66%. We have many ROI studies we can share to support BenefitEd program results, too. If you’d like to review these success stories, don’t hesitate to contact us.

Any employer can offer it to any employees who have student loan debt, or to a specific subset of employees. For example, an employer could offer student loan repayment to attract and retain talent in certain positions that require specialized training or where recruitment is more difficult.

Your name, employee ID, name(s) of your loan servicer(s), and your student loan account number(s).

You’ll obtain a link from your employer to create an account and start an application for the program.

Employee & Employer Contribution

Depending on how the employer sets up the program, they can choose to make payments once or twice a month on student loans.

Yes.

For most 529 college savings plans, there’s usually not a required minimum or monthly contribution. Employer contributions will supplement savings from contributions made by the employee.

All federal and private student loans qualify to receive payments. The student loan must be in the employee’s name.

The contribution amount varies by organization, based on their budget. We see contributions from $25 to $1,200 per month. The most common is $100/month.

No. They are separate and distinct benefit plan programs. However, you may distribute the employer contributions between the two programs and implement a cap by aggregating total employer contributions within both offerings. The retirement plan participation and related employer match are separate from Employee Choice and the related student loan repayment offering.

Yes, and we recommend also providing it to employees. It will help them fully understand how their distribution might affect their employer match contributions between retirement plans and student loan debt repayments. There are different tax consequences for each.

Employee Choice will not affect your retirement plan or its qualification as a safe harbor plan. Any employee contributions directed to the retirement plan will have a company match, in accordance with your retirement plan documents. If you offer Employee Choice and there are company match dollars available to be contributed to the Student Loan Repayment program, they will be deposited accordingly.

Eligibility requirements vary for our programs. They’re established by your employer. You’ll receive an email with a link to the sign-up page where you provide basic student loan or 529 plan information and determine which accounts will receive contributions. You’ll need your employee ID, name(s) of your loan servicer(s), and your student loan account number(s).

If your employer offers this benefit, they pay a portion of your remaining student loan debt in addition to the amount you pay on the loan. You continue to make payments according to the terms of the loan. A student loan repayment program is free money you’re not taxed on, paid directly to a loan.