Which Employers Offer Student Loan Repayment?

Student loan debt can make it difficult for graduates to achieve their financial goals. In some cases, young professionals may be forced to choose between paying off student debt or saving for retirement at a time when it's essential to start doing the latter.

Some employers provide student loan repayment assistance as an employee benefit. Companies that offer this benefit include:

-- Aetna

-- CommonBond

-- Estée Lauder

-- Fidelity Investments

-- First Republic Bank

-- Hulu

-- Penguin Random House

-- PricewaterhouseCoopers

-- SoFi

How Student Loan Repayment Assistance Works

Student loan repayment assistance programs help employees pay off their student loan debt. Assistance is usually a matching contribution or a flat contribution regardless of how much the employee is paying each month.

"Most employers repay student loans over time -- typically a set amount per month or year," says Robert Farrington, founder of The College Investor, a resource on student loan debt. "As such, employees should expect to be reimbursed over time. The longer they work, the more they can get repaid."

Depending on the company, there may be a limit on how much repayment assistance an employee receives each month, each year or in total. Some employers, however, don't have a lifetime cap, which provides an incentive for top talent to stick around for the long term.

In some cases, an employee must meet certain eligibility requirements to qualify for assistance. And it's not uncommon for public employers to require that employees fulfill service obligations to get help with payments.

If you're looking for a new job, searching among companies that offer student loan repayment assistance can make a big difference for your financial future.

[Read: Best Private Student Loans.]

Which Private Employers Provide Student Loan Repayment Assistance?

According to the Society for Human Resource Management 2018 Employee Benefits report, just 4% of employers offer student loan repayment assistance as a benefit. With student debt increasing with each new graduating class, however, it may become more common.

In early 2019, a bipartisan bill, called the Employer Participation in Repayment Act, was introduced to the Senate. If passed, the legislation would allow employers to contribute up to $5,250 tax-free every year, which could result in many more companies jumping on board.

Meanwhile, there are hundreds of private employers that offer student loan repayment assistance to their employees.

"Employers know recent graduates are typically carrying nearly $30,000 in student loan debt, and even more than that if they went to a private school or have a graduate degree," says Jamie Young, an editor and writer at Credible, which provides comparison tools for financial products, including student loan refinancing. "Offering a student loan repayment benefit is a way to stand out from other companies."

Here are some of the more well-known names and what they provide.

Aetna. The health care company matches full-time employee student loan payments up to $2,000 per year and up to $10,000 in total. Part-time employees can get a match of up to $1,000 per year and up to $5,000 in total.

CommonBond. The student loan refinance lender not only helps its customers with student debt, but also its employees. Each worker can receive up to $100 per month or $1,200 per year toward student loans with no lifetime cap.

Estée Lauder. Employees of all brands under Estée Lauder Cos. can receive $100 per month toward their student loans, up to $10,000 in total.

Fidelity Investments. Under the investment firm's student loan repayment program, employees with more than six months at the company are eligible to receive $2,000 in repayment assistance each year, up to $10,000 in total.

First Republic Bank. The San Francisco-based bank, which owns Gradifi, a startup that helps employers offer student loan repayment assistance, provides the perk for its own employees, too. Employees can receive up to $100 per month in assistance the first year, up to $150 per month the second year and up to $200 per month after that until their debts are repaid in full.

Hulu. Employees of the popular streaming service can get a match of up to $1,200 per year in student loan repayment from the company.

Penguin Random House. The book publisher offers employees with at least one year at the company up to $1,200 per year in student loan repayment assistance. The maximum student loan repayment benefit amount is $9,000.

PricewaterhouseCoopers. The second-largest accounting firm in the U.S. offers employees up to $1,200 each year in repayment assistance. The maximum benefit is $10,000.

SoFi. Another student loan refinance lender, SoFi provides employees with $200 each month in student loan repayment assistance, with no cap on how much they can receive.

[Read: Best Student Loan Consolidation and Refinance Companies.]

What Public Student Loan Repayment Assistance Programs Are Available?

Many states and the federal government offer student loan repayment assistance as an employee benefit, often in exchange for a service commitment. Here are some of the programs that are available.

National Health Service Corps Loan Repayment Program. If you're a qualifying health care provider, you can receive up to $50,000 in repayment assistance if you agree to a two-year commitment to work in a health professional shortage area.

National Institute of Mental Health Loan Repayment Program. If you work in biomedical, behavioral, social or clinical research, you may qualify for up to $35,000 per year in assistance through this program. In return, you must commit to engage in at least two years of qualified research that's been funded by a domestic nonprofit organization.

Nurse Corps Loan Repayment Program. Qualifying registered nurses, advanced practice registered nurses and nurse faculty with nursing debt can get up to 85% of their unpaid nursing debt covered over three years. To be eligible, you must commit to working at least two years in an eligible critical shortage facility in a high-need area or an accredited school for nursing.

John R. Justice Student Loan Repayment Program. This program provides assistance to local, state and federal public defenders, as well as local and state prosecutors. You must agree to work as a prosecutor or public defender for at least three years to qualify for the program. In return, you may receive up to $10,000 in student loan repayment assistance each year, up to a total of $60,000.

Armed forces repayment programs. Each major branch of the military provides student loan repayment assistance to enlisted service members to help them pay off their debt. Here's some information on some of the programs available:

-- Army Student Loan Repayment Program: Qualified active duty, Army Reserve or Army National Guard service members can receive up to $65,000 in assistance.

-- National Guard Student Loan Repayment Program: If you enlist for six years or more and meet other program eligibility requirements, you can receive up to $50,000 in repayment assistance.

-- Navy Student Loan Repayment Program: Sailors can receive up to $65,000 in repayment assistance during their first three years of service.

-- Air Force JAG Student Loan Repayment Program: After you've completed one year of service as a Judge Advocate General officer, you can apply for up to $65,000 in student loan repayment assistance over the following three years.

Several states also offer student loan repayment assistance to college graduates who choose certain career paths, such as health professions, STEM fields, teaching and farming. Check with your state to find out if there's a program available for you.

[Read: Getting Student Loans Without a Co-Signer.]

Avoid Making a Career Decision Based on Just One Benefit

Getting help paying off your student loans is an appealing perk, and in the right situation, it can be the deciding factor in whether you apply for a job.

"If two employers have a similar job, and one will help with the debt and the other won't," says Farrington, "it can be a huge incentive to try to apply to work at that company."

But depending on the total amount of the benefit, it may not be enough to make up for other potentially negative aspects of the job. For example, if your overall pay is lower, a service commitment could add up to a loss of earnings that outpaces the total assistance you receive.

"An employer-provided student repayment benefit that helps you make your payments each month is less of a gamble than a government program that requires you to make a five- or 10-year commitment before providing any relief," he adds.

As with any employee benefit, take the time to consider the whole compensation package an employer offers, and compare it to what you might receive elsewhere.