Employers can take a few simple steps to help employees better manage their student loans — here's how

Student loan borrowers hold a collective $1.6 trillion in debt. While the debt, at one point, was a tool used to afford a college degree, many borrowers find it harder than previously expected to pay back the money. Student loan debt has become such an issue that the Biden Administration has been attempting to cancel up to $20,000 in student debt per eligible borrower and has continually extended the student loan repayment pause.

While borrowers may not see federal relief just yet, they might still be able to get some sort of help managing the burden of their loans through their employers. Employees spend so much of their time in the workplace, which has already taken steps to assist employees with other aspects of their financial health — like saving for retirement through a 401(k) account.

And according to Barrett Scruggs, the VP of Workplace Financial Well-Being at SoFi at Work, many people believe that their employer should be on the hook for giving them the help they need with navigating their student loans.

"A study we conducted at SoFi at Work found that 84% of employees believe their company should be responsible for employees' financial well-being," Scruggs says. "Employees say it impacts their mental health, physical health, reduces productivity and limits their ability to focus. In fact, most employees are spending an average of 9.2 hours a week on their personal finances while at work — that adds up to more than a full work week each month!"

The positive ripple effect of employer action can help with an employees emotional and financial well-being, but also potentially make employees more engaged and productive over the long-term, since workers aren't constantly stressed about their personal finances.

"Employers are increasingly offering student loan contribution plans as a direct way to help borrowers pay down student loan debt," Scruggs says. "Like retirement contributions, these programs allow employees to dedicate a percentage of their paycheck toward student loan repayment with a match from their employer."

Besides offering a matching amount from employers, these kinds of programs allow employees to automate the decision to put money aside to make student loan payments. Having to manually save money increases the likelihood that you may put away less than you would like or even spend the money on something else. These programs, which follow a similar methodology to 401(k) contribution plans, essentially remove any opportunity to spend the money elsewhere.

According to Scruggs, such contribution plans have seen an increase in adoption since the CARES Act, which allows businesses to contribute up to $5,250 tax-free each year through 2025 to help employees manage student debt.

Scruggs also says that employers can also offer tuition reimbursement programs to help employees seeking additional education pay for the cost of that degree.

"Offering this support helps employees avoid taking out large student loans in the first place — and it's a win-win for the employer as employees are gaining new skills and knowledge to apply at work," he explains.

Of course, these kinds of interventions are quite robust in their offerings and likely won't happen overnight. Employers would need to spend significant time planning the logistics of these program implementations before offering them to employees.

One of the simplest and most affordable ways employers can help employees is to share information on what employees need to know about their student loans. This can mean sharing online resources like loan payoff calculators, or providing leads on student loan planning services, debt counseling and webinars that can help. And, it can be done just by sending emails with these links and information.

"There are many ways to help employees manage and pay down student loan debt. The first is through financial education resources and empowering employees with knowledge," Scruggs says. "This is one of the most cost-friendly ways for an organization to help and includes sharing financial education resources, updates and guidance on student loan policy, budgeting tools like a student loan calculator, and access to financial planners."

It's important to keep in mind that not everyone is in the same place in their student loan payoff journey, so some individuals may benefit greatly from simply leaning into the basics and growing their knowledge. Scruggs also asserts that even if an employer thinks they're over-communicating about any student loan news, they're still likely not communicating enough.

"They should also direct employees to studentaid.gov to keep up to date on student loan forgiveness, forgiveness programs like PSLF and more," Scruggs says.

If you're unsure of what resources your company offers in terms of student loans (or any other financial area), you can double check your employee handbook, since that's where most information around such offerings is likely to be. Or, you can speak with your HR department, or the company's People Team. If your company has a direct line to their benefits center, you can also reach out directly.

Whether or not your employer is able to offer any form of student loan debt assistance, borrowers should still take important steps to get a little more comfortable with their loan management. If you don't already know how much of a balance you owe, you should log into your loan servicer account to find out. This should also tell you what your minimum monthly payment is.

You should then figure out what type of repayment plan you'd like to enroll in. The Federal Student Aid website outlines all the options. Some borrowers opt for refinancing their student loans.

When you refinance your student loan, you essentially replace it with a different loan with a lower interest rate and better repayment terms. This move should save you money over the long-run and make it easier to pay off your balance sooner. However, note that if you refinance federal student loans you'll lose federal protections, like the current student loan payment freeze and potential student loan forgiveness.

Select ranked SoFi as the best overall student loan refinancing service and ranked Citizens™ as the best option if you need a co-signer.

Millions of Americans are still struggling to pay back their student loans. This can cause them stress that can even seep into their performance in the workplace. However, it's not too late for employers to begin taking steps to empower their employees with student loan debt management resources — or even with more robust programs that offer more direct forms of aid.

"By easing the burden of student loan debt, employees will experience less financial strain and be able to focus on other important aspects of their finances, such as adding to retirement or savings for big life events like marriage, significant purchases, or homeownership," Scruggs says. "Access to financial well-being benefits and resources can be truly empowering for anyone on the path to financial prosperity."  

*  Fixed rates range from 3.99% APR to 9.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Variable rates range from 5.74% APR to 9.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Unless required to be lower to comply with applicable law, Variable Interest rates will never exceed 13.95% (the maximum rate for these loans). SoFi rate ranges are current as of 5/6/26 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. You may pay more interest over the life of the loan if you refinance with an extended term. Medical/Dental Loan Disclaimer: Fixed rates range from 4.12% APR to 9.99% APR with a 0.125% discount for Doctors and Dentist, and a 0.25% autopay discount and 0.125% SoFi Plus Discount. Variable rates range from 5.87% - 9.99% APR with a 0.125% discount for Doctors and Dentist, and a 0.25% autopay discount and 0.125% SoFi Plus Discount. Unless required to be lower to comply with applicable law, Variable Interest rates will never exceed 13.95% (the maximum rate for these loans). SoFi rate ranges are current as of 4/1/26 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. These specialized rates are offered to applicants who are physicians or dentists with the following degrees: Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Medicine in Dentistry or Doctor of Dental Medicine (DMD), Doctor of Dental Surgery (DDS), Doctor of Optometry (OD), Doctor of Veterinary Medicine (DVM or VMD), Physician Assistant (MPA), Physical Therapy (MTP or DPT). Not available to residents, fellows, or students. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. You may pay more interest over the life of the loan if you refinance with an extended term. Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly payments as outlined in your loan agreement by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. When the autopay interest rate deduction is added or removed, the next time the loan is re-amortized (quarterly for fixed rate loans; monthly for variable rate loans),the principal balance of your loan will be spread over the remaining loan term, and your monthly payment amount will change. This benefit is suspended during periods of deferment, grace period, or forbearance. Autopay is not required to receive a loan from SoFi. Member Rate Discount: To be eligible for an additional 0.125% interest rate reduction on a Student Loan Refinancing, you must, within 31 days of loan funding, either (1) be a SoFi Plus subscriber, (2) receive an Eligible Direct Deposit into a SoFi Checking or Savings account, or (3) receive at least $5,000 in Qualifying Deposits into a SoFi Checking or Savings account. You must continue to meet at least one of the above eligibility criteria every 31 days to maintain the discount. See the SoFi Plus terms for details on SoFi Plus subscription. For more details on Eligible Direct Deposit or Qualifying Deposits, please see https://www.sofi.com/legal/banking-rate-sheet. Once you become eligible during the initial period, the discount will be removed or reinstated depending on whether the criteria have been met. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to modify or terminate this offer at any time for unenrolled participants. You are not required to meet these criteria to be approved for a loan. SoFi Plus Discount: To be eligible to receive an additional (0.125%) interest rate reduction on your Student Loan Refinancing (your "Loan") for enrolling in SoFi Plus, you must enroll in SoFi Plus within 30 days of Loan funding, either by receiving an Eligible Direct Deposit to your SoFi Checking and Savings account, or by paying the SoFi Plus Subscription Fee. Once eligible, you will receive this discount during periods in which you have received Eligible Direct Deposit to your SoFi Checking and Savings Account, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount lowers your interest rate but does not change the amount of your regular monthly payment. This discount will be removed during periods in which SoFi determines you have turned off Eligible Direct Deposit to your Checking and Savings account or in which you have not paid the SoFi Plus Subscription Fee. SoFi reserves the right to change or terminate this interest rate reduction offer for unenrolled participants at any time without notice. You are not required to enroll in Eligible Direct Deposit or to pay the SoFi Plus Subscription Fee to be eligible for Loan approval. See what qualifies as an Eligible Direct Deposit here: www.sofi.com/terms-of-use/#slr-discount
Eligible Direct Deposit means regularly recurring deposit of regular income to an Automated Clearing House ("ACH") Network during a 30-Day Evaluation Period (as defined below). Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not generate payments that are detectable by our system. So qualifying direct deposits are those where the student loan refinance discount rate is applied automatically for each month where you have an Eligible Direct Deposit of at least $1,000 per 30-day Evaluation Period. Eligible Direct Deposit does not include transfers between accounts you own, refunds, rebates, reimbursements, stimulus payments, merchant refunds, or payments from person-to-person payment services (such as Venmo). To qualify for the 0.25% interest rate reduction, the direct deposit must be recurring and paid directly into a SoFi Checking or Savings account. For the avoidance of doubt, deposits made via check, cash, or mobile check deposit are not eligible. Direct Deposit eligibility is determined by SoFi's sole discretion. The 30-Day Evaluation Period refers to the period starting on the "Start Date" and ending on the "End Date" set forth on the App Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APV Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking → Checking → APV or (ii) Banking → Checking → APV Details. If you do not qualify for the discount during the initial 30-Day Evaluation Period, your loan will not be eligible for a discount unless you re-qualify in a later 30-Day Evaluation Period. If you qualify during the 30-Day Evaluation Period, the discount will be applied on a going-forward basis only. SoFi Bank determines eligibility. If you have a joint account, each account holder receives Eligible Direct Deposits into your SoFi Checking and Savings account, then you will be eligible for all SoFi Plus benefits, including on accounts you hold in your own name. Federal Loan Disclosure: Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELiIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligiblity. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).