## 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  |

1. 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.

2. 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.

4. 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.