A Guide To Student Loan Repayment Assistance For Recent Graduates

SLRA, or student loan repayment assistance, has become vital as many organizations have added this perk to their HR policies. The employer tries to address the students’ loan problem and tries to share the burden. When an employer pays off a certain amount of employee study loan, the total amount that the employee (the student) has to pay will be reduced. 

This program is one of the highest growing programs and has become part of many organizations. When the employee has reduced the loan burden, there will be lower interest expense, and the duration to pay off the loan amount will also reduce. 

Every year the employer can make contributions up to USD 5250 against student loan repayment assistance or tuition reimbursement, or a combination of both, which will be tax-free for the employee and payroll tax-free for the employer. 

Alterations in tax benefits are expected in the future. However, still, the program seems quite attractive from the point of view of employee welfare.

Benefits Of Student Loan Repayment Assistance

Reduces stress for the current employees who have a student loan to pay

The employees who have the burden of student loans on their heads face a lot of trauma and stress. With student loan repayment assistance, the employer is trying to address the employee’s stress. 

When someone needs financial assistance the most and gets it, it can positively affect their mindset. When the employees need loan repayment assistance and get the same, it can help them make meaningful contributions to the company and enhance their productivity.

This arrangement enhances employee retention.

With this arrangement, the employee will experience good financial help. Hence, there are better chances of retention. Employees who receive student loan repayment assistance tend to stay longer in the company. 

An employee who stays for a long and makes reasonable efforts to give his best to the company will become the company’s asset soon. This arrangement is a step towards the development of human capital.

This benefit is much better than other perks like gym memberships.

Many companies offer perks like gym memberships, free snacks, food, etc. But most people find this benefit preferred over things like a gym membership. Assigning this to the perk list can be a prudent decision.

It is easy to execute and implement

The company has to talk to its finance and accounts department to understand what will be an excellent figure to offer for student loan repayment assistance.

 Which employees are eligible, what amount seems reasonable, and how to fetch the best tax benefits are some things the company and the management should decide. Once the decision comes, it is pretty simple to execute the program.

Student Loan Repayment Assistance

What Approach Do Newly Graduated Employees Have Toward The SLRA Perk?

Most graduates who have just joined the company find this perk helpful. Student loan repayment assistance is one of the leading methods to attract new graduates to the company. 

The employees feel that the company is doing something good for them so they will stay motivated. Since the reduction of debt helps the student or the employee holistically, this approach seems to be quite helpful in keeping the employees happy. Students who use such perks will be able to reduce their stress and anxiety related to loan repayment.

There were some federal rules where the student debt relief plan was dismissed. But employers seem to be quite concerned over this matter. They must keep the best employees to leave those positions. 

Hence SLRA seems to be an essential step toward making the employees feel important in the organization. The CARES and Consolidation Appropriations Act allow employers to pay USD 5250 for each student loan repayment assistance annually. 

Educational costs are too much, and hence often, bright students may have to take a loan when they want to take up the study course of their choice.

Why Does The SLRA Perk Seem To Be Better In Terms Of Roi?

Suppose you compare student loan repayment assistance with retaining employees. In that case, the employees will stay in the company for more time. Hence the recruitment costs and training costs for new employees will be saved. 

SLRA keeps the employee motivated, so the team productivity will be high. Employees who enjoy better perks would have better performance and productivity at work.

All you need to do is checkout for the SLRA amount that goes from the company and determine whether there has been an enhancement in employee productivity, turnover, or performance. Employees seem to be enjoying this perk better as it directly affects the mindset on a positive note. 

How To Know If Any Particular Company Is Providing The Option Of SLRA?

  1. Suppose you are working for a company or soon joining a company. In that case, you can directly ask the HR manager whether they are providing student loan repayment assistance. 
  1. If they do not have such an arrangement, then ask them, since it will also provide the employer with tax benefits, if they have any plans to introduce the system soon. 
  1. You may even ask them whether they have other debt assistance solutions for employees to relieve their stress. 

The company must frame policies that would make the employees happy.

There are many policies that the companies would have. One of the leading and growing HR policies is the SLRA. Employers have understood the plight of new talents that they recruit. It becomes pretty tough for the employees to pay off their study debts. 

But with the CARES Act and Consolidation Appropriations Act, employers can pay USD 5250 as SLRA. Suppose the employers have included these perks in their companies.

In that case, these policies should be communicated to the employees so that they know whether they are eligible for the perk or not.


Companies need educated and skilled staff, so implementing student loan repayment assistance solutions can offer an added advantage in terms of better retention and good ROI. 

Education costs are rising, and students who wish to study can take a student loan. When they join employment, they can check out if any special perquisites relate to student loan repayment assistance. 

A company that thinks about stress reduction for their employees by way of debt repayment can have a better reputation in the eyes of the employees. Also, there is better retention which can reduce recruitment and training costs. 

A company must be transparent in its policies. Communicating the benefits and perks to the employees can make them aware of what they are eligible for. Student loan repayment assistance is one such policy that has created a better effort to reduce employee debts and make them happier at the workplace. 


What is student loan repayment assistance?

Student loan repayment assistance is a program offered by employers, the government, and other organizations to help borrowers pay off their student loans. This can include loan forgiveness, loan repayment plans, and other forms of financial assistance.

Who is eligible for student loan repayment assistance?

Eligibility for student loan repayment assistance varies depending on the program. Some programs are only available to borrowers who work in certain fields or have specific types of loans. Other programs may have income or employment requirements.

How can I find out if I qualify for student loan repayment assistance?

To find out if you qualify for student loan repayment assistance, you can start by researching available programs online or contacting your loan servicer. Your employer may also offer repayment assistance, so it’s worth checking with your HR department.

What types of student loans are eligible for repayment assistance?

The types of student loans that are eligible for repayment assistance depend on the program. In general, federal loans are more likely to be eligible for assistance than private loans. However, some programs may offer assistance for both federal and private loans.

How does loan forgiveness work?

Loan forgiveness is a program that allows borrowers to have some or all of their student loans forgiven. This typically requires meeting certain eligibility criteria, such as working in a certain field or making a certain number of on-time payments.

What is a loan repayment plan?

A loan repayment plan is a schedule for repaying your student loans. There are several types of repayment plans available, including standard, graduated, and income-driven plans. Each plan has different terms and requirements.

Can I apply for multiple student loan repayment assistance programs?

Yes, you can apply for multiple student loan repayment assistance programs. However, you may not be eligible for all programs, and some programs may require you to meet certain criteria or make certain commitments (such as working in a certain field).

Student Loan Repayment Assistance

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