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Student Loan PayDown
Make a positive impact on your company's bottom line and your employees' financial well-being through direct contributions towards employees' student loans.
Why Student Loan PayDown for Your Workforce:
Create benefit programs that best fit your workforce's needs with ease, directly within the admin portal.
Tax Free Contributions
Employer-funded contributions of up to $5,250 per employee per year toward employee student loan debt are tax-free, making the impact of Student Loan PayDown more meaningful for your employees.
| Loan Balance | $26,500 | $18,300 |
|---|---|---|
| Total Interest | $5,696 | $3,850 |
| Total Years of Repayment | 10 years | 6.9 years |
| Total Cost of Loan^2 | $32,196 | $22,150 |
The Consolidated Appropriations Act, 2021 (CAA), extends for five years COVID-19 relief that allows employer-provided student loan repayment as a tax-free benefit to employees under Section 127 of the Internal Revenue Code.
Estimated savings are based on a $26,500 student loan balance with a 4.00% interest rate, under a 10-year repayment plan with a $100 monthly employer contribution plus regular monthly payments made by the borrower.
Data sourced from E*TRADE Financial Corporate Services, Gradifi Solutions admin portal, for a sample of 15 employees, on May 15, 2020. All contributions for employees are as follows: $100 for month 1-12, $125 for month 13-24, $150 for month 25+. Payment savings are for principal and interest.