Student Loan Repayment Assistance Programs

This article gives an overview of the different student loan repayment assists available for students to help them ease their student loan repayment.

Updated by Anuroop C on 26th February 2020

Paying your student loan is a tiring process. And many people get into student loans without knowing all the hoops, terms and conditions. For every article regarding student loans, there will always be hundreds of questions about their loan repayment options and how they can complete their loans. Many companies have started providing student loan repayment assistance. This is the reason that there is always a need for assistance in the loan repayment program and there is a number of them too. Many of them are provided by the Federal Government itself. There are two types of repayment assistance programs:

  • Federal Loan Repayment Assistance Programs

  • Private Loan Repayment Assistance Programs

Table of contents

Private Student Loan Repayment Assistance Programs

These are the Student Loan Repayment Assistance Programs that are provided by the employers to their employees as assistance in their loan repayment process. They offer it as one of the benefits  According to a recent survey, over 50 percent of employees in a company prefer student loan assistance programs over additional vacation.

Payments directly go to the Student Loan Servicers( most of the major servicers do accept this) thereby directly paying their student loans. 

The amount that the companies are providing now has been ranging from $100 a month to nearly $10,000.Many employers do not have a limit on the number of student loan assistance programs. They usually continue until the student loan is completely paid off. It also usually continues to pay until the employee is working actively at the company and often restricted to full-time employees only. These Loan Repayment assistance programs are more common in the medical sector(where there is a lot of demand for talent), although they are slowly finding their way to the corporate world as well.

These are currently considered taxable income by the IRS. Therefore you will always end up paying tax amounts for this assistance. However, Congress is considering removing that facility. Some employers are waiting to introduce this policy once Congress clears this bill that will remove the tax on LRAP.

Some of the Federal Loan Servicers that facilitate LRAP are:

  • BenefitEd (Nelnet)

  • EdAssist (Bright Horizons Family Solutions)

  • Fidelity

  • Goodly

  • Gradifi (First Republic Bank)

  • Gradvisor

  • Gusto

  • IonTuition

  • LRAP Association

  • SoFi at Work

  • Student Loan Genius

  • Tuition.io

Some of the employers that are providing Student Loan Repayment Assistance are:

  • Natixis Global Asset Management(up to $10,000)

  • Nvidia(up to $6,000)

  • Gradifi(up to $3,000)

  • LendEDU(up to $2,400)

  • Aetna(up to $2,000)

  • Martin Health Systems(up to $2,000) and many more...


Searching for student loans? Find the best student loans just for you.


Government Student Loan Repayment Assistance Programs

The government introduced the student loan repayment assistance a long time back and in different departments. The departments and their loan repayment assistance programs are as follows:

Federal Government

This facility is used by around 10,000 federal employees, who receive an average of $7,000 annually. The Federal Government introduced a program that pays up to $10,000 a year with a cap of up to $60,000 for Federal Student Loans for its highly qualified members. This was introduced much before, probably in the early ‘90s, through a program called Office Personnel Management(OPM). This requires you to commit at least 3 years to work for the government, which when failed, requires you to pay back in full amount.

Military

Enlisted and active-duty members of the US Military might be eligible for Student Loan repayment assistance of up to $65,000(in Federal Loans). The Air Force programs usually provide less than that of Army and Navy programs. It should be specified before itself, on the enlistment contract. The candidates must satisfy the required criteria to qualify for this program.

Judicial Department

The US Department of Justice provides LRPA for state attorneys and public defenders, which allows the participants to receive up to $10,000 annually, capped at $60,0000. A 3-year commitment is required and is actually tax-free as well. If you are in public law then you should probably check out The American Bar Association guide containing different loan repayment assists.

State Governments

A majority number of states offer more than 100 Student loan Repayment Assitance Programs. Most of these programs are in the medical field. You can research for the many medical student loan repayment options available such as NHSC loan repayment program, etc. 


Coming to financial assists, many state governments also provide student loan forgiveness programs that you might want to take a look at. This can come off as a great help, especially if you are a person in the teaching profession or earn a low income. 

So this is the overview of the Student loan repayment assistance programs that are available for you. It is important to know all your available options since this can help you decide your future plans and decision making. If you are in your student loan repayment crisis and need help, you can look at the different student loan repayment plans. Or you could also consider student loan consolidation or student loan refinancing to help you tackle your debts. Choose from the best companies to refinance your student loans. If your servicer is bad, you may look for different options to switch between Federal loan servicers.