Redirect Bonuses & Unused PTO to Student Loans
Automate principal-only student loan payments using unspent payroll budgets. Reduce PTO liabilities and increase employee retention with a high-impact tax-free program.
Sign-on bonuses
Referral bonus
Paid Time Off
Quarterly bonus
Annual bonus
Holiday bonus
Unused PTO Balance
Liability40
hrs expiring
Employees lose hours that vanish into thin air.
Employers face expensive end-of-year tax liabilities.
Paidly Conversion
$2,000
to loan principal
+ Paidly Recurring Benefit
Combine your lump sum with an employer match to pay off loans years faster.
Tax-Free Student Loan Repayment via Section 127
Establish a fully compliant educational assistance program. Under current IRS code, employers can contribute up to $5,250 annually toward an employee's student loans without any tax liability for either party.
Learn more about tax-free benefits
Fully Compliant
Structured to meet all CARES Act and IRS Section 127 guidelines for tax-free educational assistance.
Zero Technical Integration
Works alongside your existing payroll or HRIS without complex API setups or data migrations.
$5,250
Maximum Annual Tax-Free Limit
IRS Qualifying Educational Assistance
Accelerate Payoff Dates and Reduce Compound Interest
Cash bonuses often lose roughly 40% or more immediately to taxes. By routing that value directly to student loans, you maximize the impact of every dollar.
Tax Savings Impact
Standard cash bonuses face heavy withholding and payroll taxes. Paidly routes the full value directly to the loan principal to maximize employee savings.
Standard Cash Bonus
~$3,150
Tax-Heavy
Paidly Contribution
$5,250
Tax-Free
Advantage: Paidly routes the full $5,250 to loans, providing $2,100 more value than a traditional bonus.
Total Acceleration
SOONER
Debt-Free Date
July 2034
(vs March 2036 standard)
Interest Savings
$3,761.77
(in avoided interest)
Eliminate the Annual PTO Liability Time Bomb
Convert accrued PTO expenses into a tax-advantaged student loan repayment program. Attack debt with pre-tax dollars while clearing balance sheet liabilities without administrative complexity.
Convert Unused Time into Financial Flexibility
Don't let your "use it or lose it" hours expire or be eroded by withholding. Route the full value of your PTO directly to your loan principal to hit zero debt faster.
Powered by Paidly On-Demand
Flexible payments. Zero recurring commitments.
Add on-demand repayment to your rewards strategy in minutes. Zero-integration required as we handle loan verification and direct servicer payments.
PTO Buyback and
Bonus Resources
Internal adoption requires clear education. Access our manager guides and pitch kits to help your organization understand the massive financial impact of tax-free principal payments.
Boost Your PTO Buyback
A technical breakdown on how redirecting PTO to student loans creates a long-term financial advantage for employees.
Read Article
Tax-Free Bonus Strategy
A guide to structuring bonuses using Section 127 to maximize cash value for your workforce while bypassing income tax.
Explore Guide
Modernize Your Total Rewards Strategy
Contact our implementation experts to launch a student loan program at your organization.
For employees, we’ll provide you with the resources to share Paidly’s value with your HR or Benefits team.
Or Get started today with Paidly On-Demand