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Many companies have contemplated a student loan reimbursement program for some time, but have taken a wait-and-see approach. But more are ready to act now, according to workplace savings professionals, based on a tax exclusion for these types of payments being made permanent as part of the One Big Beautiful Bill Act, with adjustments for inflation starting in 2026. There’s also a recognition that the federal government’s new loan repayment system, while simpler, may cost some borrowers more.
“Employers are feeling a lot more certain and confident right now about providing the benefit,” said Allison Brecher, general counsel at Vestwell, a financial technology company focusing on savings and investment programs for businesses and individuals. The tax-free benefit for student loan repayment was introduced as part of the CARES Act. It allowed employers to contribute up to $5,250 toward an employee’s student loans on a tax-free basis from March 27, 2020, through Dec. 31, 2025.
Making the tax-free status permanent has removed the biggest adoption barrier for employers, said Laurel Taylor, co-founder and chief executive of Candidly, a provider of financial wellness benefits to companies. “The fear was offering it and pulling it back,” Taylor said.
To be sure, student loan reimbursement has been gaining popularity among employers for several years amid soaring student loan debt. The stakes are especially high considering that between 2000 and 2020, the number of Americans with federal student loan debt more than doubled to 45 million from 21 million, according to a report from The Brookings Institute. The total owed more than quadrupled to $1.8 trillion from $387 billion.
“Employers know this is an area that’s crippling the workplace,” Taylor said.
A small but growing percentage of companies currently offer student loan debt repayment. In 2024, 14% of companies polled offered a repayment program, according to a survey by the International Foundation of Employee Benefit Plans, a nonprofit with 31,000 employer members. By contrast, only 4% of companies polled offered the benefit in 2019. As of 2024, another 18% of companies were considering adding a loan reimbursement program.
Companies that offer student loan reimbursement include Estee Lauder, Everest Global Services, Fidelity Investments, Nvidia, New York Life, Peloton Interactive, SoFi and United Talent Agency. Benefits and eligibility requirements vary by company.
Nvidia, for example, offers $350 per month toward student loans, with a lifetime maximum of $30,000 to U.S. employees working 20 hours or more per week who graduated within the past three years. New York Life, meanwhile, caps the benefit at $170 per month, or $2,040 per year, for a maximum of $10,200 over five years. The benefit is available to all active full-time and benefits-eligible part-time non-officer employees.
Taylor said she hasn’t yet heard employers say they are going to increase the loan repayment benefits they already offer, but they’ve expressed excitement about the adjustment for inflation that they will be able to pass on to employees. Calculated increases will be rounded to the nearest multiple of $50.
For many student loan borrowers, getting help from an employer is a lifeline. In May, the Trump administration restarted collections on defaulted student loan debt after a five-year pandemic-related pause. The administration has said it intends to restart wage garnishment later this summer, which is unwelcome news for many borrowers.
“With the federal options potentially changing, we’re starting to see increases in employers’ interest in student loan services,” said Amy Vaillancourt, president of wealth solutions at Voya Financial, whose offerings include student loan reimbursement capabilities to employers. Voya research from last August found that 42% of employees are more likely to stay with their employer if offered assistance to pay off their student loan debt.
Attracting talent (92%) and retaining workers (80%) are the main reasons cited by companies for these benefits, according to survey data from the International Foundation of Employee Benefit Plans.
“Benefits are a great attraction and retention tool,” said Julie Stich, the organization’s vice president of content.
Around 58% cited the desire to increase or maintain employee satisfaction and loyalty, and 14% said it was to maintain or increase productivity.
“Employees who are struggling under the weight of student loans may be distracted at work,” particularly if their wages are being garnished, or they are struggling to pay bills, Stich said. “There are employers who recognize that helping this way might be able to help employees with their productivity,” she added.
While it’s not a benefit that applies to everyone, it can be an effective strategy for hiring recent grads who are likely to have student loan debt, according to Paulette Olin, senior vice president of global human resources operations and benefits at Everest Global Services. Some 8% of the company’s eligible employees take advantage of the benefit, which pays $150 per month for two years, $200 a month for years three through five and a lump sum of $3,000 at the end of year five, for a total maximum contribution amount of $13,800.
At United Talent, 14% of its eligible population is currently enrolled in the program. The company provides direct contributions of $50 a month to employees’ student loans, with no cap on these benefits, in terms of time frame or amount. “This program has been particularly meaningful for those early in their careers, such as assistants, who often carry the student debt while earning on the lower end of the pay scale,” according to Lucy Avsharyan, vice president of benefits. “Supporting them at this critical stage helps ease their financial burden,” she said.
Employers are also helping with education expenses in other ways. Some offer tuition reimbursement, which can be used for undergraduate or graduate programs, depending on the company. More companies are also choosing to offer a 401(k) plan match to workers who are paying off their student loans.
Brecher said she hopes more employers will support student loan borrowers through a reimbursement program, a 401(k)-matching program, or both. Tax deductibility is limited, but employers could still choose to contribute more. Many employees with student debt are stressed because they’re unable to get ahead in their savings, she said. “It’s very hard to do that when you’re on that hamster wheel of student loan debt.”
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