You might not think that the greatest employee benefit is when your company fills the employee toilet paper rolls. But, this is what you should know: Google pays student loans to its employees.
Although it won’t completely eliminate the debt, the company announced recently that it would match $2,500 per year of loan debt for eligible employees.
Google’s decision is part of a growing trend of companies offering student loan repayment benefits as America grapples with its student loan crisis. Around 45 million Americans owe $1.6 billion in college loans. This is the second largest amount of debt after mortgages, and $600 billion more than Americans owe in credit card debt.
What percentage of companies pay off student loans?
There are more companies that offer pet insurance than those that offer student loans help. But, this is changing as potential employers realize the severity of the problem.
About 8.9% of companies offer student loan benefits programs. This is 7.9% more than it was just a few short years ago. It wasn’t that long ago that student debt was easily paid off in just a few years.
According to the Department of Education, the average amount of debt is now around $36,000. Companies that are savvy in recruiting can help employees pay this off.
Among those that have instituted student loan programs are: Aetna, Fidelity Investments, Estee Lauder, New York Life, Natixis Global Asset Management, Penguin Random House, PricewaterhouseCoopers and Staples.
Can an employer pay off student loans tax-free?
Employers are not allowed to deduct student loans from their taxes, which is why more companies don’t offer them. However, there are some rumors that this might change.
To loosen regulations on deductions, bills have been introduced during the two previous sessions of Congress. Although they haven’t been passed, the legislation is sensible when employers are allowed to deduct tuition aid.
Do student loans get paid off by the military?
There are many plans available to help student loans be forgiven or paid off by the U.S. military. However, it is important to note that joining the Marines does not mean you will work at Staples.
While it can be an exciting career, serving in the armed forces is a little more risky and demanding than selling office supplies. If you are worried about your student loan payments, don’t rush to the nearest recruitment station. Ask where your M16 is.
There are many things to consider. It is true that the military offers some of the best student loan programs.
What happens if you don’t pay off your student loan?
You might think that getting rid of student loans is easy. Both the federal government and private lenders will fight to get their money back, no matter what type of loan it is.
The government can garnish your wages, Social Security checks, and tax refunds if you default on a federal loans.
The government can also hire a third party collection agency to harass you into paying if it is unable to recoup the money in that manner.
What is the Billionaire Who Pays Student Loans?
A pleasant surprise was presented to the May 2019 graduating class of Morehouse College’s commencement ceremony. Robert Smith, the speaker, said he would repay all student loans.
Morehouse is a historically black college located in Atlanta. The average student graduates with $35,000 to $40,000 in debt. The $34 million tab was paid by the 400 graduating students.
What if you don’t work for Google or have a billionaire beefactor to pay off your student loan?
Google is a trend-setter in many ways, so it will likely accelerate student loan repayments. However, the train is still at the station and may not arrive at your office until later.
You have three options:
Paying is a bad idea. You won’t be able to get away with it, as we said earlier. You’ll only ruin your credit score and reduce the chance of ever getting a loan with decent interest rates.
Continue to pay and hope for government relief. There is increasing talk in Washington D.C. about limited student loan forgiveness. However, it’s difficult to know what this might mean for individual borrowers. There are many ways to reduce your monthly expenses and pay down student loans quicker. How?
Talk to a certified credit counselor if you are struggling with debt. The key to getting out of debt is lowering interest rates. While student loan rates can’t be negotiable they are also relatively low. Average rate for undergraduates: 4.66%
A counselor can assess your financial situation and recommend a strategy. A debt management program is a way to reduce interest rates. This is primarily credit card debt. Your overall monthly payment could drop if you consolidate your credit card debt and other bills into one payment. These savings can be used to pay off student loan debt.