Student Loan Benefits on the Rise

Buoyed by attraction and retention efforts as well as employee enthusiasm over the perk, student loan benefits are on the rise.

The number of employers offering student loan benefits more than tripled in the past five years, from 4% in 2019 to 14% in 2024, according to new data from the International Foundation of Employee Benefit Plans (IFEBP), a nonprofit organization with 31,000 employer members.

The number of employers offering the benefit in 2024 is consistent with—though slightly higher than—SHRM data. SHRM’s Employee Benefits Survey found that about 9% of organizations offered the benefit in 2024, up from 7% in 2022.

The rise in student loan repayment benefits comes as student debt saddles employees to the tune of a collective $1.77 trillion, according to the Federal Reserve. The benefits are a way to offer support to employees while also serving as a competitive advantage for organizations, said Julie Stich, vice president of content at IFEBP.

“The national spotlight has been on the extreme student debt challenges facing many people throughout the U.S.,” she said. “In addition to the possibility of relief via the federal government, employer student loan repayment assistance is an effective way to support those managing student loan debt.”

The IFEBP survey found that the top reasons employers consider student loan repayment programs are to attract future talent (cited by 92% of employer respondents), retain current employees (80%), maintain or increase employee satisfaction and loyalty (58%), and remain competitive within the industry/region (55%).

Offering the benefit also meets the growing demands of employees: Fifty-one percent of employees believe their employers should assist with student loan debt, according to a 2024 survey of 1,000 employees conducted by New York City-based financial firm Betterment at Work.

Student loan benefits are “increasingly appealing,” for these reasons, said Edward Gottfried, senior director of product management at Betterment at Work.

“It’s clear that student loan benefits have become a critical part of many employers’ strategies to attract and retain talent,” he said. Employers including Adidas, Aetna, Estée Lauder, and Staples offer contributions toward paying off workers’ principal debt amounts.

Still, some employers have been cautious about adding such a benefit for reasons such as needing to consider cost concerns, determining return on investment, and facing resentment among workers who have already paid off loans or who have ineligible loan debt, IFEBP research found.

Those reasons for caution are likely why student loan benefits, despite having been an up-and-coming benefit for years, are still far from being the most common educational benefit. According to IFEBP, 92% of employers offer some sort of educational benefit, the most common of which is tuition reimbursement (offered by 57% of employers). Other common educational benefits include continuing education courses (offered by 45%), personal development courses (40%), and licensing courses/exams (37%).

Attractive Benefit for Employees, Employers

Employees with student debt face not only financial stress but mental anguish, as well. Research from Betterment at Work found that nearly all employees (91%) say their student debt causes them at least some anxiety.

“That indicates how dire the situation is,” Gottfried said.

Student loans also make it challenging to balance other financial priorities, such as building emergency savings, saving for retirement, or simply meeting the increasing cost of living, Gottfried said.

That’s partly why employees are keen to get help from their employer. And offering the benefit can be good for employers, too. For one thing, Gottfried said, helping employees address that stress can increase employees’ focus at work and their productivity overall.

Importantly, offering such a benefit can also have a positive impact on employers’ attraction and retention efforts. More than three-quarters of employees with student debt (77%) say they would be more likely to accept a job offer from a prospective employer if it offered to help them pay down their student loans, according to Betterment.

Looking Ahead

Student loan benefits may become even more common with time. The 401(k) match on student loans—a provision of SECURE 2.0, a federal law focusing on retirement that passed in 2022 and took effect last year—is poised to gain increasing momentum in 2025, “as employers recognize its importance in providing both immediate financial relief and supporting long-term stability,” Gottfried said. The provision allows employers to make matching contributions to employees’ retirement accounts based on their student loan payments.

“We anticipate that student loan support will continue to become something that many employers integrate into their benefits packages in some way, whether it’s through a matching program or providing access to financial advisor counseling, repayment tools, and more,” he said.