Image by Getty Images; Illustration by Bankrate

Key takeaways

  • Employer student loan repayment programs can offer employees assistance in paying off their student loans through such things as signing bonuses and recurring payments directly to lenders.
  • Student loan repayment assistance programs can offer employees tax-free benefits of up to $5,250.
  • Certain government programs may come with tax-free assistance and higher caps than employer-based offerings.

If you’ve ever felt excluded from student loan forgiveness programs — or are just seeking additional help with your education debt repayment — don’t forget about private employers.

Employer student loan repayment programs, which currently provide workers with up to $5,250 in tax-free aid, will likely only continue to grow. They’re now a permanent part of the tax code, thanks to the July 2025 One Big Beautiful Bill Act.

So, if your goal is to pay off student loan debt, take some time researching these employers. Consider all your options to maximize your ability to repay your debt in a way that works for your budget.

How to access employer student loan repayment benefits

If you’re working for an employer offering student loan repayment assistance

Check timeline requirements

Some companies might offer the benefit from your hire date, while others could require you to be with the company for a set period before you’re eligible. The number of hours you work per week could also be a differentiator.

Sign up

If you qualify, make sure you talk to your human resources department. They can help you sign up for any benefits program.

If your current employer doesn’t offer student loan repayment benefits

Look for a new job

Find a position with a company that offers student loan repayment assistance. You might start by consulting your professional network (perhaps on LinkedIn), checking in with job recruiters, canvassing online job boards and using our handy list.

Talk to HR

Consider suggesting it to your human resources manager. Try highlighting the benefits to the company. For instance, employers who offer student loan repayment assistance can do so tax-free up to the $5,250 limit. Offering these benefits may also help recruit, engage and retain employees.

If your HR reps are interested — but perhaps wary of implementing the benefit themselves — you might furnish a list of third-parties that provide employers with student loan repayment services. Firms include:

  • Bright Horizons EdAssist Solutions
  • Candidly
  • Gradifi
  • Highway Benefits
  • Paychex
  • Paycor
  • SoFi at Work
  • Tuition.io
  • Voya Financial

Research government assistance programs

You may be able to access student loan repayment assistance programs through a federal or state government agency based on your career choice. For example, health professionals, public defenders, military members and STEM workers may be eligible. Learn more about opportunities in your industry by talking to colleagues and your professional organizations as well as researching online.

5 Types of employer student loan repayment assistance

There are several different types of assistance you may receive, depending on your employer:

  1. Signing bonus: Some employers offer a lump-sum payment as a signing bonus when you first start. Bonuses are more popular for roles or fields with a high demand for workers.
  2. Recurring payments: With platforms like Gradifi, employers can make direct payments to your lender on your behalf. These payments can occur monthly, annually or at some other interval. Some companies may even offer a lump-sum payment after you’ve been employed for a set period. In some cases, employers may include assistance in your paycheck, which you can then use to pay down your loans.
  3. Service-based assistance: If you’re a member of the military or your career qualifies you for a loan repayment assistance program offered by a government agency, you’ll typically receive annual payments or a lump-sum payment after you’ve provided the required service and met other program requirements.
  4. Tied to retirement savings: In some cases, an employer may offer to contribute to your retirement if you put a certain percentage of your paycheck toward student loans instead.
  5. Trade unused vacation time: At least one company, PTO Exchange, allows employees to apply unused paid time off toward their student loans instead of carrying it over to the following year.

Which companies pay off student loan debts?

More and more private companies are starting to offer student loan repayment assistance programs. Examples of these firms include:

Company Contribution
Ally Financial $100 (monthly)
Estee Lauder

$100 (monthly)

$10,000 (overall)

Fidelity Investments

$15,000 (full-time associates)

$7,500 (part-timers)

New York Life

$170 (monthly)

$10,000 (overall)

SoFi $200 (monthly)
    • 23andMe
    • Atticus
    • Boeing
    • Carhartt
    • Chegg
    • ChowNow
    • Freddie Mac
    • Nvidia
    • Parallon
    • Peloton
    • Penguin Random House
    • PWC
    • Sotheby’s
    • Travelers

According to a report from the International Foundation of Employee Benefit Plans (IFEBP), just 4 percent of companies offered a student loan repayment benefit in 2019. In 2024, that figure grew to 14 percent.

What the experts say
“Employees today expect their employer to help support their financial well-being — it’s no longer a ‘nice-to-have’ benefit.” — Cory Mau, Paychex vice president “Financial tools and top-tier benefits should be available to everyone, not just employees of large companies.” — Kelli Keough, SoFi executive vice president

How employer student loan repayment gets taxed

Student loan repayment assistance payments used to be considered taxable income to employees and were subject to payroll taxes. The CARES Act of March 2020 — part of the relief provided during the COVID-19 pandemic — allowed employers to provide up to $5,250 in annual student loan repayment assistance without tax consequences for the employer or the employee.

The Consolidated Appropriations Act extended the tax break through 2025 — and the Big Beautiful Bill made it permanent in July 2025. In fact, the latest student loan legislation says the tax benefit will increase annually to account for inflation, rounded to the nearest multiple of $50.

Note that the $5,250 limit is a combined limit that also includes employer-provided tuition assistance programs. Many companies also offer tuition reimbursement, which is different from student loan reimbursement. Tuition assistance programs typically reimburse employees up to a certain dollar amount after they complete their coursework.

Certain government assistance programs offering student loan repayment benefits do not require you to pay taxes. Check with the program to find out whether taxes apply. This is true of the National Health Service Corps Loan Repayment Program, which offers up to $75,000 for full-time workers and $37,500 for those working half-time in payments over two years.

What’s your next step?

Paying off student loans can be overwhelming, so it’s a good idea to take advantage of available assistance programs. If you’re job searching and your student loan debt is a concern, it pays to look for employers who offer this benefit. If you already work for an employer offering this program, make sure you understand how the program works to maximize the benefit.

Use Bankrate’s student loan calculator to help determine how much employer assistance could speed your repayment process and save you on interest. Oh, and if you haven’t exhausted other relief options, explore student loan forgiveness programs, too.

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