Many employers have expressed interest in offering a student loan payment program as an employee benefit, both to attract and retain talent. While individuals have come to expect traditional benefits like health insurance and paid time off, many new graduates are looking for companies that offer non-traditional benefits like student loan repayment assistance. According to a study by iontuition, a student loan management company, 80 percent of individuals would like to work for a company that offers student loan repayment assistance with a matching opportunity, and 49 percent of those individuals would prefer student loan payment contributions over an employer-sponsored 401(k) plan.

There are several vendors that assist employers in processing payments toward employee’s eligible education loans by administering the transactions between the employer and the multiple student loan processors. Programs can also include employees with 529 plans, and parent loans if it is a qualified student loan. External vendors can help ensure compliance and make sure that payments are being distributed properly, especially if employees owe money to multiple lenders.

Contact your NEEBCo representative if you are interested in more information or a presentation of the service.

Student Loan Repayment Benefits