You know, with all the talk about student loan repayment and forgiveness from the Trump administration and Congress narrowing down options, it turns out your workplace might just be the best place to find some relief. More and more employers are actually stepping up with student loan reimbursement benefits, especially now that the “One Big Beautiful Bill Act” has made it even more financially appealing for them to do so.
For a while, many companies have been thinking about offering student loan reimbursement, but they’ve largely taken a “wait-and-see” approach. However, according to workplace savings professionals, a lot more companies are ready to act now. This shift is mainly thanks to a tax exclusion for these types of payments being made permanent as part of the “One Big Beautiful Bill Act,” with inflation adjustments starting in 2026. Plus, there’s a growing understanding that while the federal government’s new loan repayment system is simpler, it might actually cost some borrowers more.
The Permanent Tax Break Changes Everything
“Employers are feeling a lot more certain and confident right now about providing the benefit,” says Allison Brecher, general counsel at Vestwell, a financial technology company. She explains that this tax-free benefit for student loan repayment was first introduced as part of the CARES Act, allowing employers to contribute up to $5,250 toward an employee’s student loans on a tax-free basis from March 27, 2020, through December 31, 2025.
Making this tax-free status permanent has really removed the biggest barrier for employers to adopt these programs, according to Laurel Taylor, co-founder and chief executive of Candidly, a financial wellness benefits provider. As Taylor puts it, “The fear was offering it and pulling it back.”
Why Companies Are Stepping Up
It’s true that student loan reimbursement has been gaining traction among employers for a few years now, especially with the huge amount of student loan debt out there. The numbers really highlight the problem: between 2000 and 2020, the number of Americans with federal student loan debt more than doubled, jumping from 21 million to 45 million, according to a report from The Brookings Institute. The total owed more than quadrupled, soaring from $387 billion to $1.8 trillion. “Employers know this is an area that’s crippling the workplace,” Taylor emphasizes.
While it’s still a small percentage, a growing number of companies are offering student loan debt repayment. In 2024, about 14% of companies surveyed offered such a program, a significant jump from just 4% in 2019, according to the International Foundation of Employee Benefit Plans. And as of 2024, another 18% of companies were considering adding a loan reimbursement program.
Some well-known companies that currently offer student loan reimbursement include Estee Lauder, Everest Global Services, Fidelity Investments, Nvidia, New York Life, Peloton Interactive, SoFi, and United Talent Agency. Of course, the specific benefits and eligibility requirements can vary quite a bit from company to company.
For instance, Nvidia offers $350 per month toward student loans, with a lifetime maximum of $30,000, for U.S. employees working 20 hours or more per week who graduated within the past three years. New York Life, on the other hand, caps the benefit at $170 per month, or $2,040 per year, for a maximum of $10,200 over five years, available to all active full-time and benefits-eligible part-time non-officer employees.
Taylor hasn’t heard of employers planning to increase the loan repayment benefits they already offer just yet, but she notes they’re excited about the inflation adjustment they’ll be able to pass on to employees, with calculated increases rounded to the nearest $50.
A Lifeline for Borrowers and a Tool for Employers
For many student loan borrowers, getting help from an employer can truly be a lifeline. In May, the Trump administration restarted collections on defaulted student loan debt after a five-year pandemic pause, and they’ve even said they plan to restart wage garnishment later this summer, which is certainly unwelcome news for many.
“With the federal options potentially changing, we’re starting to see increases in employers’ interest in student loan services,” says Amy Vaillancourt, president of wealth solutions at Voya Financial, which offers student loan reimbursement capabilities to employers. Voya’s research from last August found that a significant 42% of employees are more likely to stay with their employer if offered assistance to pay off their student loan debt.
The main reasons companies cite for offering these benefits are clear: attracting talent (92%) and retaining workers (80%), according to survey data from the International Foundation of Employee Benefit Plans. “Benefits are a great attraction and retention tool,” notes Julie Stich, the organization’s vice president of content. Around 58% of companies also said they wanted to increase or maintain employee satisfaction and loyalty, and 14% mentioned maintaining or increasing productivity.
Stich points out that “employees who are struggling under the weight of student loans may be distracted at work,” especially if their wages are being garnished or they’re having trouble paying bills. She adds, “There are employers who recognize that helping this way might be able to help employees with their productivity.”
While this benefit doesn’t apply to everyone, it can be a really effective strategy for hiring recent graduates, who are very likely to have student loan debt, says Paulette Olin, senior vice president of global human resources operations and benefits at Everest Global Services. She noted that about 8% of their eligible employees take advantage of their benefit, which pays $150 per month for two years, $200 a month for years three through five, and a lump sum of $3,000 at the end of year five, totaling a maximum contribution of $13,800.
At United Talent, 14% of their eligible workforce is currently enrolled in their program. The company makes direct contributions of $50 a month to employees’ student loans, with no cap on the time frame or amount. Lucy Avsharyan, vice president of benefits, shared that “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.” She added, “Supporting them at this critical stage helps ease their financial burden.”
Employers are also helping with education expenses in other ways, like offering tuition reimbursement for undergraduate or graduate programs, depending on the company. More and more companies are also choosing to offer a 401(k) plan match to workers who are busy paying off their student loans.
Allison Brecher from Vestwell hopes that more employers will support student loan borrowers through a reimbursement program, a 401(k)-matching program, or both. While tax deductibility is limited, she emphasizes that employers could still choose to contribute more. She notes that many employees with student debt are so stressed because they just can’t get ahead in their savings. “It’s very hard to do that when you’re on that hamster wheel of student loan debt,” she says.
It seems like employer-backed student loan assistance is definitely a trend to watch, offering a much-needed financial break for many!