This article aims to answer frequently asked questions about Student Loan PayDown.
- What Is a Student Loan PayDown (SLP) Plan?
- Why Is My Company Offering a Student Loan PayDown Plan?
- How Do I Change the Loan Account to Receive the Student Loan PayDown Benefit From My Employer?
- I Am the Co-signer on a Loan. Can I Participate in the Student Loan PayDown?
- How Much Will I Save on My Student Loans From My Company’s Student Loan PayDown Plan?
- Do I Have To Pay Taxes on My Company’s Student Loan PayDown Plan?
- What Access Will My Employer Have to My Student Loan Account and Its Information?
- Why Would I Be Removed From My Employer's Student Loan PayDown/College SaveUp Program?
- I Missed the Prior Month's Contribution. Am I Still Eligible to Receive It?
- I Just Completed Enrollment in My Employer’s SLP/CSU Program. When Will My First Contribution be sent?
- What Happens if My Primary Loan in My Gradifi Account Is Paid Off or My Student Loan Servicer Cannot Process My Payment?
- What Happens if the Employer Contribution Amount Is Higher Than the Remaining Balance on My Loan?
- My Loan Account Is in My Previous Legal Name (e.g., Maiden Name). Will My Account Still Be Eligible for SLP Contributions?
- I Received a Notification That I Have Been Removed From My Employer’s SLP/CSU Program. Can You Tell Me Why?
What Is a Student Loan PayDown (SLP) Plan?
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 we will pay your loan servicer.
Why Is My Company Offering a Student Loan PayDown Plan?
Your company cares about your financial wellness and wants 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 Change the Loan Account To Receive the Student Loan PayDown Benefit From My Employer?
If you want to update the loan account receiving SLP contributions, you must add the loan account to your Gradifi profile. Add new loan account details:
- Log into the Gradifi platform via www.gradifi.com/login using your email and password.
- Click My Accounts at the top of the landing page.
- Click Add Account.
- Type the name of your loan servicer into the Student Loan Servicer Name field. If your loan servicer name does not populate from the list of options, you can enter this manually.
- Select the associated payment address for your loan servicer.
- Enter your account number in both requested fields and confirm the name on the loan.
- Depending on your loan servicer and employer program requirements, you may also be required to select your student loan type and include a validation document.
- Click Submit.
Once this loan account is added, click Account Options within your loan account details and select Allocate Benefits Here.
I Am the Co-signer on a Loan. Can I Participate in the Student Loan PayDown?
No, not currently. You must be the primary borrower on the student loan to participate in the Student Loan PayDown Plan.
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 has been 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 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.
Why Would I Be Removed From My Employer's SLP/CSU Program?
The employer’s HR benefits team determines eligibility for any SLP/CSU program. If you have any questions regarding your eligibility to be added or removed from their SLP/CSU program, don't hesitate to contact your Benefits Team directly.
I Missed the Prior Month's Contribution. Am I Still Eligible to Receive It?
We are unable to provide retroactive contributions. However, you may reach out to your HR or Benefits team to see if they offer that option.
I Just Completed Enrollment in My Employer’s SLP/CSU Program. When Will My First Contribution Be Sent?
To receive SLP or CSU contributions from your employer, you must be listed as eligible for your employer’s program and have an active student loan and 529 registered within the “My Accounts” section of your Gradifi profile as of the last day of the month before the contribution month. (e.g., to receive a contribution in a September payment cycle, you must be eligible and enrolled with a valid student loan in your account as of EOD August 31st).
Suppose you complete enrollment before the end of the current month. In that case, you should receive your first contribution around the 15th business day of the following month (or the next month your employer considers you eligible for a contribution). Please refer to your employer’s program details to confirm the frequency of contributions.
What Happens if My Primary Loan in My Gradifi Account Is Paid Off or My Student Loan Servicer Cannot Process My Payment?
If Gradifi attempts to make a payment to your student loan account and the servicer cannot process it, including if the loan has been fully paid off, then that payment should be sent back to us by the loan servicer. We will then notify you, and you can either correct the existing loan or add a new loan.
If you don’t make any changes and you have another loan registered in your Gradifi account, we will attempt to send that payment to the following highest-priority student loan account in your “My Account” list in the next monthly payment cycle.
If you do not have another valid registered loan, any SLP Plan contributions in your account after 30 days will be returned to your employer. Gradifi will attempt to contact you if we cannot process a payment. Still, you must ensure that your student loan account information is accurate.
What Happens if the Employer Contribution Amount Is Higher Than the Remaining Balance on My Loan?
If a portion of the employer contribution was used to pay off the student loan account fully, the loan servicer should send the remainder back to us. We will then notify you, and you can add a new loan.
If you don’t make any changes and you have another loan registered in your Gradifi account, we will attempt to send that payment to the following highest-priority student loan account in your “My Account” list in the next monthly payment cycle.
If you do not have another valid registered loan, any SLP Plan contributions in your account after 30 days will be returned to your employer.
My Loan Account Is in My Previous Legal Name (e.g., Maiden Name). Will My Account Still Be Eligible for SLP Contributions?
Yes, as long as your student loan account is under your current or previous legal name as the primary borrower, it will meet the Gradifi account holder name validation requirements. When adding your account to your Gradifi profile, enter your name within the "Name on Loan" or "Account holder name" field exactly as it appears on your servicer's records. If this name is a mismatch from the name provided to Gradifi by your employer, you will be presented with a modal to provide a reason for the name mismatch.
If "other" is selected as the reason for the mismatch, specific details must be entered into the submission window, and the loan will be placed in a "Pending Verification" state for review by our Operations Team.
I Received a Notification That I Have Been Removed From My Employer’s SLP/CSU Program. Can You Tell Me Why?
Your employer’s HR benefits team determines eligibility for any SLP/CSU program. If you have any questions regarding your eligibility to be added or removed from their SLP/CSU program, don't hesitate to get in touch with your Benefits Team directly.