There are resources you can provide to show how this type of benefit can meet the evolving demands of today’s workforce as it relates to the high percentage of the current and incoming workforce struggling with student debt and financial stress.
Learn more about Employees looking for Student Loan Financial Assistance from their Employers. Check out RISLA'S Factsheet.
A great place to start would be your employers Human Resources department. If that is not an option, reach out to your manager to point you in the right direction.
"86% of young workers surveyed by American Student Assistance said they would commit to five years with an employer that helped them pay off student loans. Yet, only 8% of companies offer a Student Loan Repayment to their employees. With so few companies providing debt help, those that do often gain a recruiting edge."
* Estimated calculations are based on the terms entered above using a 15-payment term. 'With Contributions' payment calculations also include the Employer Contributions value entered.
With RISLA’S Employer Student Loan Repayment Program we work with companies to help them offer tax-free student loan repayment as an employee benefit. Here are some frequently asked questions about our Employer Student Loan Repayment Program and how it benefits employees’ future.
An employee’s loan qualifies for repayment if they took out a loan to pay qualifying education expenses that were:
An employee can receive up to $5,250 per year toward student loan payments. This is not included in employee’s income. The tax-free amount of $5,250 is the combined limit for loan repayment and other types of education assistance under Section 127 of the Internal Revenue Code.
Recent Federal stimulus legislation included a provision that extends an employer’s ability to provide a student loan repayment benefit to employees on a tax-free basis before January 1, 2026.
Under this provision, an employer may contribute a combined total of $5,250 annually toward an employee’s student loans, and/or education expenses (e.g., tuition, fees, books). Such payment would be excluded from the employee’s income. The provision applies to any student loan payments made by an employer on behalf of an employee before January 1, 2026.