Have you been wondering how you’ll ever pay off your student loans? Student loan debt can grow quickly and take up a huge part of your monthly budget. The good news is that some employers want to help their workers pay off their existing student loan debt. Shocking, maybe, but it‘s true! Here’s how to spot the real winners and how it works.
Whether you have a small amount of student loan debt or several thousand dollars worth, getting it paid off is a priority. Employers can help you pay that debt down in different ways. Learn how a student loan repayment option, if your employer offers it, can help you financially.
Work for the Right Employer and Zap Those Student Loans Now.
Find an Employer Who Offers Repayment Help
Already employed with a company that offers student loan repayment assistance? It can be as simple as visiting the human resources department to discuss enrollment plans. Looking for an employer that offers student loan repayment help? They may or may not advertise this perk in their initial employment offer. Many employers offer benefits packages for employees, but they don‘t necessarily help with paying off old student loans. If they do, it’s important to know how much they will reimburse.
How Does It Work?
If your employer offers repayment bursaries, they will most likely pay off up to a specified amount annually. When they do make those payments, it’s usually through a third-party company. Money goes directly toward the principal of the loan amount, but you do need to keep in mind it’s considered taxable income.
Provide Pertinent Information
If you enrolled in a pay-off program, your employer will need records of your student loan information.
This may include:
- The lender’s name and address
- Interest rate of the loan
- Length, terms, and balance of the loan
- If the loan has a co-signer
Most individuals take out student loans in their own names; some may take out loans through a parent. In addition, some may be government-funded loans while others are private. Inquire with your employer if these types of loans qualify or not.
Read the Fine Print
Are you already in a loan repayment program? Sometimes a moratorium or deferment may prevent your employer from paying off your loan right away. In addition, if you qualify for government repayment options, you may not qualify through your employer.
This includes:
- A past or present government or non-profit job
- Being enrolled in an income-based repayment plan
- If you’re a public school teacher in a low-income district
Make it known to your employer about what government programs or repayment options you’re already involved with. This could also affect your eligibility through the government assistance program.
How Does This Benefit You?
Most employers will only pay a small portion of your student loan on a monthly or an annual basis. While it may not be your entire loan obligation, it can be a significant portion. Over time, this may equal the costs of interest and fees, helping your pay off your debt faster.
Trying to make ends meet after landing your career can still be a challenge from time to time, especially when making large monthly student loan payments. Taking advantage of an employer student loan payoff program can help you achieve your financial goals that much quicker!
