According to an example from NerdWallet demonstrating the impact of company student loan repayment programs upon students: “A student loan borrower with $27,000 in loans at an interest rate of 5 percent who pays $286 a month will be debt-free in 10 years and pay $7,320 in interest. But with $100 a month from an employer’s student loan repayment benefit added to the loan payment, the borrower shaves off over three years of payments and saves $2,282 in interest.” Benefits are typically rendered through companies such as IonTuition or Gradifi and usually offer around $100 a month for a certain amount of years (sometimes up to a lifetime maximum). Here are a few of these companies giving a helping hand to our indebted workforce:
Benefit details: Full-time employees: match up to $2,000 per year, with a $ 10,000-lifetime maximum. Part-time employees: match up to $1,000 per year, with a $ 5,000-lifetime maximum.
Industry: Marketplace lending
Benefit details: $1,200 per year, until the loan is paid off.
Industry: Skincare and makeup
Benefit details: $100 per month, with a lifetime maximum of $10,000.
Industry: Financial services
Benefit details: $2,000 per year, with a lifetime maximum of $10,000.
Industry: Events promotion
Benefit details: $100 per month, or $1,200 per year, with a lifetime maximum of $6,000.
Natixis Global Asset Management
Industry: Asset management
Benefit details: $1,000 annual benefit — up to $83.33 per month, for a lifetime maximum of $10,000 over 10 years.
Benefit details: Recent graduates (within the last three years) can apply for reimbursement of $6,000 each year to help repay student loans, up to $30,000.
Penguin Random House
Benefit details: $100 per month, up to $9,000 for up to 7.5 years.
Industry: Professional services
Benefit details: $100 per month, or $1,200 per year, for up to six years
Industry: Office supply retail
Benefit details: $100 per month for 36 months
When you’re offered a job or are comparing employers, experts say to look at the entire benefits package and weigh what will affect your life most. Although student loan repayment programs are on a par with carpooling subsidies (4 percent) and even less common than pet health insurance (11 percent), it is clearly on the rise as companies are ethically pushed to help out a little bit with their student workers. Although they are on the rise, it is a glacial rise, and such benefits as educational stipends are much more available to workers in this current job climate.
With the educational stipend, it is possible to increase your earning potential without increasing your debt. Therefore, although employer-student loan repayment may not be available to all just yet, that soon may be changing. And while we wait, there are other alternatives to take advantage of at most places of work.
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