Employer-Assisted Student Loan Repayment


More and more employees are entering the workforce with student loan debt. Employer-assisted student loan repayment allows employers to help their employees pay back that debt.

Product Features & Benefits

  • Make regular, monthly payments to employees’ student loans
  • Employers choose who receives the loan repayment benefit and how much to contribute
  • This plan helps improve retention rates and decrease recruitment costs with a differentiated, unique benefits package
  • Increase employee engagement with a benefit that addresses a specific employee need
  • BenefitEd takes care of the program administration, making implementation simple

How the Benefit Works

Infographic depicting how the employee's student loan is paid off from two paths - from the employee making regular monthly payments and from the employer sending additional contributions on the employee's behalf.

Employee Student Loan Payment

Employees are responsible for making their regular minimum monthly student loan payment.

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Employee

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Monthly Loan Payment

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Employee Student Loan

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Employee Student Loan

With Benefited

Employers send an additional contribution amount to BenefitEd, which is applied to the student loan.

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Employer

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Employer Contribution

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Employee Student Loan

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Employee Student Loan

Getting started with Employer-Assisted Student Loan Repayment is simple.

  1. Program Design

    We work with you to identify which employees carry student loan debt, and help customize a benefit package based on your unique needs. Customization options include:

    • Eligibility: Which employees are eligible for the benefit
    • Duration: How long employees will have this benefit available
    • Contribution Amount: How much you offer per employee
    • Contribution Frequency: How often you make loan payments
  2. Easy Plan Implementation

    We will take care of the necessary outreach to onboard employees to the program. We’ll also send email communications to your employees to let them know when deposits have been made and when they can expect to see payments appear.

    • You provide employee enrollment file
    • We’ll enroll eligible employees, collect their loan information
    • You verify employee status and provide lump sum payment
    • We distribute the payment to employee accounts through various loan servicers
  3. Payment Plan Reporting and Results

    Tracking the impact on retention is all handled by BenefitEd.

    • Monthly enrollment reports help keep tabs on your loan repayment program
    • Employees receive email confirmation that payment has been administered, reinforcing program value

Ready to see what BenefitEd can do for you?

Request a demo

Questions

Why would an employer want to offer a student loan repayment benefit?

Recruitment and retention top the list for many human resource departments. BenefitEd student loan repayment fills a need that is requested by millennials more than other traditional employee benefits. And it supports financial well-being and quality of life for employees.

What student loans qualify for this program?

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

Who is eligible for this student loan repayment benefit?

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 positions that require specialized training, when recruitment is more difficult.