Employers that offer student loan repayment for employees have an advantage in attracting and retaining highly qualified staff*. Employees experience reduced financial stress, while your company culture and staff engagement improves.
*86% of employees would commit to a company for 5 years if the employer helped pay back their student loans.
-American Student Assistance Young Workers and Student Debt Survey Methodology 2017
6 out of 10 adults with student loan debt would consider switching employers to receive help in paying off debt.
-2018 Talent Shortage Survey, Manpower Group
The question is no longer if employers should offer student loan repayment, the question is how quickly can an employer implement a program for their employees. The Employer Student Loan Repayment program offered jointly by CHESLA and our Rhode Island counterpart, RISLA, offers an easy solution.
- We provide flexibility and customization to meet your recruiting and retention goals.
- We administer a customized communication plan to explain the benefits and program details to your employees.
- We reduce your servicing workload by taking all employee calls and providing one-on-one assistance on how to get started and better manage student loan debt.
- We manage, on your behalf, all monthly emails (with your logo and/or message if you wish) informing employees that your company made another payment on their loan.
- We offer loan refinance options (CHESLA’s Refi CT product) that can help your staff better manage their student loan debt.
- If you paydown CHESLA Refi CT loans on behalf of your employees, your company may be eligible for a State of Connecticut tax credit beginning 01-01-22.
The federal government is providing incentives for employers to offer student loan repayment programs for employees.
- Employers can make tax-free payments of up to a maximum of $5,250 per employee;
- Both federal student loans and private student loans are eligible;
- Payments for principal or interest on a “qualified education loan”;
- Employers and employees save on federal payroll taxes on qualifying payments; and
- Employees save on federal income taxes.
These incentives are in place until 2025.
“The burden of student loan debt has become salient and exhausting. It’s crushing... there is a huge demand for student loan assistance.” - Julia Pollack, Labor Economist at ZipRecruiter
We welcome the opportunity to discuss the Employer Student Loan Repayment Program in further detail. Please email jhurlock@chesla.org if you are interested. Thanks!