Unleash Financial Freedom: The Benefits of Workplace Student Loan Assistance
Breaking the Chains of Student Loan Debt - Your Employers can help with Workplace Student Loan Assistance.
The benefits of workplace student loan assistance are many. It can help you reduce your monthly payments and make it easier to pay off your debt sooner.
A Ray of Hope - The Emergence of Workplace Student Loan Assistance
An employee benefit that had been available for years finally gained mainstream recognition. The CARES Act allowed employers to offer what is also known as student loan repayment assistance, tax-free up to $5250 a year under a section 127 plan.
You can use this benefit to pay off your student loans. This benefit provides significant financial relief for individuals who are struggling with debt repayment and allows them to focus on saving for retirement or building an emergency fund instead of worrying about their monthly payments.
A Win-Win Situation - The Advantages of Workplace Student Loan Assistance
Talent Magnet: Offering student loan assistance can set your company apart and attract top talent in a competitive job market.
You Pay Less Interest: Students who receive workplace student loan assistance pay less interest over time, as well as get lower monthly payments, which means that the loans are paid off faster with extra payments or lump sum payments if necessary.
Positive Company Culture: Providing student loan assistance demonstrates to employees that the company cares about their financial wellbeing and is invested in their future.
Can my employer pay for my student loans?
Yes, as an employee, you can take advantage of this benefit until 2025. In order to qualify for this tax-free student loan repayment program, your employer must provide the funds as a benefit and not an employment incentive. The payments must be made directly to your lender or servicer on your behalf.
This is where a company like Paidly helps your employer contribute directly to your student loans. We verify your loan information so your student loan debt is never shared with your employer, and we help make the payments on your employer's behalf. Your Paidly account is yours and when you switch employers you can take Paidly with you.
How Does Workplace Student Loan Assistance Work?
Workplace student loan assistance is a benefit offered by some employers, who may choose to pay off part or all of your student loans. There are two main forms of workplace student loan assistance: loan repayment programs and contributions to employee loan payments, Paidly offers support for both of these programs through our standard recurring benefit plans and our on-demand product for lump sum payments.
Loan repayment program: which allows an employer to repay all or part of an employee's outstanding debt, either in one lump sum or over time (usually monthly).
Contribution toward loan payments: this means that instead of paying off all or part of your debt outright like with the first option above, they simply contribute money towards making sure those bills get paid on time every month via direct deposit into either an account linked directly with their payroll department.
With Paidly a contribution toward student loans will happen in the form of a supplemental payment and the loan holder is expected to continue to make regular monthly payments.
The Case for Workplace Student Loan Assistance
Offering workplace student loan assistance can provide numerous benefits for employees and employers alike. A few reasons why your company should seriously consider this type of benefit:
- Talent Retention
- Financial Wellness
- Improved Company Culture
- Extra payments can cut years and save thousands of dollars off student loans
It's not just about the money though. Workplace Student Loan Assistance can improve company culture by giving you more flexibility in deciding where you want to work and what career path you want to take--thus allowing you to be happier at work and more productive overall.
Financial Freedom Awaits
With so many benefits to workplace student loan assistance, it's no wonder that more companies are starting to offer this benefit. If you're looking for help paying off your student loans, consider asking your employer to offer this benefit and tell them to Meet Paidly.
Paidly is a Student Loan Repayment Benefit platform. Leveraging over a decade and a half of Fintech, student loan origination, and refinancing experience. Paidly specializes in creating custom student loan repayment benefit plans, designed specifically to allow employers to pay directly towards their employees' student loans. Paidly's system requires no integration and enhances talent attraction and employee retention.
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The information provided is of a general nature and an educational resource. It is not intended to provide advice or address the situation of any particular individual or entity. Any recipient shall be responsible for the use to which it puts this document. Paidly shall have no liability for the information provided. While care has been taken to produce this document, Paidly does not warrant, represent or guarantee the completeness, accuracy, adequacy, or fitness with respect to the information contained in this document. The information provided does not reflect new circumstances, or additional regulatory and legal changes. The issues addressed may have legal, financial, and health implications, and we recommend you speak to your legal, financial, and health advisors before acting on any of the information provided.
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