As the job market continues to tighten, employers are facing stiff competition to attract and retain the best talent. To appeal to the droves of workers balancing student loan payments with other financial goals, a growing number of employers are offering to knock thousands of dollars off an employee’s student loan tab.
See Our Slide Show: Best College Values, Lowest Debt at Graduation
Investment bank Natixis Global Asset Management recently began rewarding employees who've been with the company for at least five years with $5,000 toward their federal student loans, with an additional $1,000 payment each year for up to five years. Others, including consulting firm PricewaterhouseCoopers, textbook rental company Chegg and online ordering platform ChowNow, have announced similar deals.
Details vary, including whether the programs cover graduate or private loans, for example. Contributions are considered taxable income, but Congress is considering a bill that would make them tax-free. Although few employers offered such programs in 2015, "we'll see other large organizations, particularly within financial services and technology, offering this benefit in 2016," says Bruce Elliott, manager of compensation and benefits at the Society for Human Resource Management.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The extra payments can help debt-burdened employees retire loans more quickly, shave interest costs and get started sooner on other financial goals. With the boss’s help, Charlie Donovan, 31, a regional director at Natixis in Boston, is whittling down loans that helped pay for a degree from Assumption College in Worcester, Mass. "That should uncover enough extra cash to beef up my children's college funds or my retirement savings," he says.
See Our Slide Show: 10 Best College Values, 2016
-
Are You an Auto Theft Target? Discover the CluesThieves seized over 850,000 cars last year. See which models, states and behaviors draw the eyes of opportunists.
-
Google Smart Home Devices Are Glitching and Users Are FrustratedFrom missed alarms to unresponsive commands, Google’s smart home tech is leaving users in the lurch.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Is Amazon Prime Day? Everything We Know, Plus the Best Deals on Apple, Samsung and MoreAmazon Prime Amazon Prime Day is four days this year. Here are the key details you need to know, plus some of our favorite deals to shop during the sale.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
