In this article we will see what jobs will help pay off students loan.Student loans are loans acquired for educational purposes with the hope of returning these loans in the future with interest. Student loans are given to individuals who have completed high school and intend to go further with their academic pursuits. According to the US statistics, about 1.7 trillion dollars have been incurred as student loans, which means that per head, each student borrower owed about $39,351. Companies started to help their employees pay off their student loans as a way of attracting employees and also keeping them.
Paying off student loans serves as some sort of cushioning effect of the emotional toll it might take on employees trying to pay off loans and work at the same time. Jobs that help pay off student loans help create loyal employees and keep the company in a good light in the long run.
The option of remote work has made it easier for many companies in the US to help their student workers in the repayment of their loans. Jobs that help in paying off student loans include jobs in marketing, medical sciences, web design, event planning, project management, customer service, writing jobs, etc. Companies like Ally Financial, Carvana, Carhartt, Chegg, and others
What Company Jobs Help Pay Student Loans?
The listed companies according to the Forbes list offer student loans.
- Ally Financial:
Ally Financial offers up to $100 minimum monthly repayment of student loans and $10,000 maximum repayment. A few of its employees have taken hold of its student loan offer which amounts to a total of $1.95 million.
In 2018, Carvana partnered with Gardifi to assist with student loans for its employees. In Carvana, employees who are under full-time employment by the company receive about $1,000 every year as a sum to pay down their debt. Full-time employment is a criterion for receiving this financial aid.
Carhartt, a clothing and accessories company contributes about $50 every month for employees’ loans and contributes up to a maximum of $10,000 to it. Full-time and part-time employees enjoy this privilege that was first launched in 2018 by the company.
Chegg is an education website that has since its inception helped pay off student loans. Chegg’s loan repayment is in two methods. Cash or Stock Shares.
Cash: Chegg gives employees about $1,000 per year to pay student loans.
Stock Shares: Chegg sells a portion of shares for employees and after the removal of tax, the net total is transferred to the company that manages the students’ loan repayment. This method of loan repayment offers up to $5,000 loan assistance and $1,000 cash benefit.
- Estée Lauder:
This company offers up to $100 – $10,000 every month in repayment of student loans.
Categories Of Student Loans
Student loans are many but are majorly grouped into two categories; Federal and Private student loans.
Federal Government Student loans:
There are five (5) types of these federal loans:
- Direct Subsidized Loans (Stafford Subsidized Loans)
- Direct Unsubsidized Loans (Stafford Unsubsidized Loans).
- Parent PLUS Loans
- Graduate PLUS loans
- Direct Consolidation Loans
Direct Subsidized Loans:
Subsidized loans are the type of loans whereby payment is not made until the individual graduates. Subsidized loans are given to students who face serious financial hardships and whose family’s yearly income is less than $50,000.
Subsidized loans are open to both students who are Dependent and Independent.
To qualify as a dependent student, your ward should be less than 24 years old by the end of that tax year, must be a full-time student for at least five months of a college, and must be your blood relative, foster child, or stepchild, must have residency in the US, Canada or Mexico (exceptions are given to adopted kids), you must provide for 50% of the child’s financial need and lastly, the child must not file for a joint tax return for that year. Below is a breakdown of the financial aid for dependent students.
First year of college- $5,500 – $3,500 (max.)
Second year of college- $6,500- $4,500 (max.)
The third year of college and beyond- $7,500 – $5,000 (max.)
On average, students who are dependent receive about $31,000 and about $23,000 maximum on student loans.
Those who qualify as independent students have the following criteria: at least 24 years old, should be a graduate or a professional student at least, is married, an orphan, a veteran, must have legal dependents asides from their spouse, homeless, or is on the verge of being homeless.
First year – $9,500 – $3,500 (max.)
Second year – $10,500 – $4,500 (max.)
Third year and above – $12,500 – $5,500 (max.)
On an average, independents can receive loans of about $57,500 and a maximum of $23,000
Direct Unsubsidized loans:
Direct unsubsidized loans require the student to pay the interest accumulated when they have graduated, and in other cases, if they drop out. The interest percentage for undergraduate loans was about 2.75%, 4.3% for professional students and graduate students. The annual loan limit for unsubsidized loans is between $5,500 to $12,500, the amount dependent on the student’s school year and for dependents, their guardian’s tax return.
Financially independent students have larger loan benefits, whereas financially dependent students are only given the same maximum benefit if their parents are not eligible for Parent PLUS loans.
PLUS Loans are in two categories; The Parents (for dependent undergraduates) and the graduates themselves. PLUS loans have no maximum amount unlike other loans and carry an interest rate of 5.3% throughout the loan.
Direct Consolidation Loans:
These loans help to relieve the stress of remembering multiple loan repayment dates after you graduate. It simplifies the repayment process to become one month to one loan agency or more, depending on the individual’s capability. Although it may cause a longer stretch in the repayment process, an increase in the interest rate, and a reduction in eligibility for loan forgiveness programs. Private student loans are restricted from having consolidated loans.
Private Student Loans:
These loans are somewhat like every other personal loan- dependent on credit history for eligibility. Although their interest rates are higher than that of federal loans, they are required by students and parents that are unable to meet up with their needs despite the federal loans collected. These interest rates may be fixed or variable rates. Private loans are not subsidized and may require payments while still in school and deferment options are limited.
Pded in any federal legislation for amnesty and no loan forgiveness.
Current statistics show that about 46 million Americans owe student debts of which 45.4 million have federal loans, this makes it a total of $1.75 trillion in student debts in the US. The impact of these debts has not been favorable to the US economy.
While the debts grew by 3.6% between 2019 and 2020, the US economy came down by 3.6%, and over the last ten years, the debts have grown by $78.7 billion yearly. These debts have reduced consumer spending and business growth in the economy.
Frequently Asked Questions
Will Amazon pay off my student loans?
Amazon pays up to 95% tuition fees for its eligible employees.
Will Walmart pay student loans?
On the 27th of July, 2021, Walmart announced its readiness to pay off all fees for college tuition for employees through its LBU (Live Better U) education program.