What is Student Loan PayDown?
The Student Loan PayDown Plan is an employee benefit where your employer helps you pay down your student loans by directly contributing to your student loan account. Your company will send the contribution to Gradifi, and Gradifi will pay your loan servicer directly.
Why is my company offering a Student Loan PayDown Plan?
They care about your financial wellness and want to help you reach your life goals! They understand that student loans can be burdensome and want to help you pay them down faster so you can start saving sooner.
How do I sign up for my company’s Student Loan PayDown Plan?
You will receive an email from Gradifi with a link to sign up. You must sign up for an account and enter your student loan information. The whole process takes less than five minutes; all you need is your student loan account number and the address where payments need to be sent. We will be notified that you have created your account and will start making payments when your company's plan starts. You will not receive a contribution until you register a valid student loan with Gradifi.
What type of student loan accounts are eligible?
You must enter a valid student loan where you are the primary borrower that meets the following criteria:
- A federal or private loan from a US-based lender taken out exclusively for funding higher education expenses at an accredited institution.
- It cannot include personal or home equity loans or credit card debt, even if that loan was used to pay for education.
- A debt collection agency must not own it.
I am the co-signer on a loan. Can I participate in the Student Loan PayDown?
No, not currently. You must be the student loan's primary borrower to participate in the Student Loan PayDown Plan.
Can I stop making or reducing my monthly payment now that I receive a Student Loan PayDown Plan contribution?
We recommend that you continue to make your normal monthly student loan payment so that your Student Loan PayDown Plan contributions can help you get out of debt faster. Gradifi payments are sent at roughly the same time every month, but we are not responsible for any individual's missed monthly payment, so you should consider this an additional payment.
How much will I save on my student loans from my company’s Student Loan PayDown Plan?
Savings will vary by individual depending on how much student debt you have, your interest rate, and the contribution amount.
Do I have to pay taxes on my company’s Student Loan PayDown Plan?
Due to the COVID-19 pandemic, the CARES Act was passed, which includes provisions allowing employers to contribute up to $5,250 per employee per year tax-free. This went into effect on April 1, 2020. Please consult your human resources department for the new tax and payroll management of your Student Loan PayDown Plan. State income tax treatment may vary by state. If you have additional questions about this, please consult your human resources department.
What access will my employer have to my student loan account and its information?
Your employer will not have access to any of your student loan account information. Gradifi needs your loan account number and address, but we do not return any of that information to your employer. We protect that information with our ISO and SOC II certifications.