Student loan refinancing is the next big employee benefit

By Carolyn Morris | Published on October 21, 2025

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Gen Z’ers are currently the fastest-growing segment of the workforce, expected to make up about 30% of American workers by 2030. But unlike some previous generations, their priorities are a little bit different. Rather than stability alone, many Gen Z’ers are looking for work-life balance and a company that shares their values.

They’re also one of the most indebted generations when it comes to their education. Older Gen Z’ers carry nearly $21,000 in student debt per grad, about 13% more than their Millennial counterparts. For many new workers entering the job force, that means worrying about paying off debt first — often before saving for retirement.

Now employers are starting to take notice. A growing number of companies are enticing prospective staffers with student loan refinancing and assistance as an employee benefit, right alongside 401(k)s and health insurance. It’s an effort to both demonstrate shared values, and show new employees that they understand the student debt situation and want to be part of the solution. Here’s what you need to know about this employee benefit.

Why is student loan assistance revolutionizing the workplace?

First, consider the scope of the student loan debt and how it affects the job market. Here’s just a snapshot of the average student debt Gen Z grads are taking on, according to recent data from the Education Data Initiative.

Average student loan debt by degree:

• Physician (Medical Doctorate): $264,519
• Law (Juris Doctorate): $130,000
• Business administration (master’s): $43,251
• Electromechanical engineering (bachelor’s): $32,821
• Computer and information science (bachelor’s): $29,090
• Education (bachelor’s): $28,001

Most new graduates have debt: Around 59% of new graduates have taken out student loan debt of some kind. Although the prevalence of student debt declined for the first time in 2023, it’s still quite high: The average borrower currently has around $40,000 in total student loan debt.

Graduate students carry even more: According to an analysis from the Education Data Initiative, the average 2020 master’s degree graduates currently had more than $64,000 in student debt, and PhD holders have nearly $90,000 on average.

They are burdened with monthly payments: Students who graduate with debt have to start their financial lives with monthly student loan payments, which can make it difficult to save for retirement and other goals. Refinancing¹ can help lower annual percentage rates (APR) and help put student borrowers on stronger financial footing².

What does student loan debt mean for employers?

There’s a reason many employers are beginning to offer student loan repayment benefits and refinancing assistance programs. That’s because it can make a huge difference in employees’ wellbeing — which can in turn help increase employee retention.

Many workers worry about money: More than 50% of Gen Z survey respondents said they were stressed about money and didn’t have enough to feel financially independent. And a recent study showed that 86% of employees would be more likely to stay with an employer for longer if that employer offered student loan assistance.

New benefits to match new needs: Currently, 34% of employers report offering student debt assistance. Other new benefits slowly gaining traction include egg freezing and employer-provided fitness activity trackers.

Employees want expanded benefit programs: Financial wellness programs are a relatively new phenomenon, but a large percentage of surveyed employees said they preferred better benefits over salary increases — making this an important way for employers to attract and retain talent.

Several companies have already set precedents for helping employees deal with student debt.

In return, they aim for talented recruits and less employee turnover. Plenty of companies, including Google, Aetna, and Estee Lauder, all offer assistance programs to help pay down employees’ student loans.

The government also incentivizes employers to help. In 2020, the CARES Act gave companies the ability to provide up to $5,250 in employer student loan repayment to eligible employees, completely tax free. And in 2021, Congress passed the Consolidated Appropriations Act, which extended that benefit through 2025. Right now, legislators are working on another bill that could make that extension permanent.

We recommend checking with your employer to find out if they offer any student loan payment assistance or benefits.

What if your company doesn’t offer student loan assistance?

If you find out that your job doesn’t have any student loan repayment programs, the next step is to figure out other ways you could find relief. Check studentaid.gov and browse the income-driven repayment plans*. The new SAVE plan** offers great benefits, like broader requirements for lower payments and an interest rate benefit to ensure your balance doesn’t grow out of control.

*As a result of ongoing court actions, the terms of some Income-Driven Repayment (IDR) plans, including the SAVE plan, may be subject to change. Please refer to studentaid.gov for the current status of these plans.
*A federal court has issued a stay preventing the U.S. Department of Education (ED) from operating the Saving on a Valuable Education (SAVE) Plan. Please refer to studentaid.gov for the current status.

Another option is refinancing your student loans. If you have good credit and meet your lender’s eligibility requirements, you could score a lower interest rate or a lower monthly payment. This is a good option if your student loans don’t qualify for income-driven repayment or you have private student loans. You can research different lenders, check your rates, and find the right one for you. Earnest, for example, offers a quick rate check that won’t impact your credit score. Check your rate today to see how much you could save by refinancing with Earnest.

About the Author

Carolyn Morris
Carolyn is a content marketer and editor who specializes in financial services. With over a decade of experience in the financial services industry, Carolyn has a passion for demystifying the loan application and repayment process for students and their families.

Disclaimer

Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.