Your employer offers BenefitPlus — here is what it means for you.
Good news: your employer is helping you pay down your student loans. Through BenefitPlus, your company can put up to $5,250 toward your loans every year, and you do not pay any tax on that money.
BenefitPlus in one sentence: a benefit your employer turned on so they can pay your student loan servicer directly, on your behalf, up to $5,250 a year, tax-free to you.
Three things, every year you're enrolled.
Up to $5,250 per year
Paid directly toward your student loans by your employer, every year you're enrolled.
Zero tax on the money
No federal income tax, no FICA on the contribution. It does not show up in Box 1 of your W-2.
Federal, private, refinanced
Works with any qualified education loan used for your own higher education expenses.
Three steps. About five minutes.
- 1
Check your eligibility
Your employer decides who is eligible (for example, full-time employees after 30 days). Click "Check my eligibility" and sign in with the email your employer uses for you. The portal will tell you instantly if you qualify.
- 2
Connect your loan
Securely link your student loan account. For federal loans, connect through studentaid.gov or upload your MyStudentData file. For private loans, enter your servicer and account number. You can connect more than one loan.
- 3
Watch your balance drop
Your employer's contribution is sent directly to your loan servicer on a regular schedule (usually monthly). You'll see the payments show up on your servicer's site and on your BenefitPlus dashboard.
Tax benefits in plain English.
Under a section of the tax code called Section 127, your employer can pay up to $5,250 per year toward your student loans, and the IRS treats that money as tax-free to you. That means:
- You do not pay federal income tax on it.
- You do not pay Social Security or Medicare tax on it.
- In most states, you do not pay state income tax on it either.
- It does not show up in Box 1 of your W-2.
If your employer contributes $5,250 a year and you are in a typical tax bracket, the same $5,250 in your paycheck would have been worth more like $3,400 after taxes. Getting it tax-free toward your loans is roughly 53% more valuable than getting it as a normal raise.
Section 127 employer student loan repayment is permanent under the One Big Beautiful Bill Act (OBBBA) of 2025, and the $5,250 cap is scheduled to rise with inflation beginning in 2026.
Does this affect my PSLF?
No.
BenefitPlus payments are made by your employer to your loan servicer on top of your normal monthly payment. They do not replace your monthly payment. That means:
- Your required monthly payment under PSLF (Public Service Loan Forgiveness) still counts the same.
- You do not lose qualifying payments because BenefitPlus paid extra.
- You can keep working toward PSLF and use BenefitPlus to knock down your balance faster.
If you are on an income-driven repayment plan, your required payment amount does not change because of BenefitPlus contributions.
Meet Maurice, your benefits master.
Maurice is a trained student loan and benefits master available to you 24/7 through the chat widget on every page of BenefitPlus and on a dedicated page at /maurice. He answers the questions employees actually have: "Does my refinanced loan still qualify?" "What happens if I leave the company?" "Is this going to mess up my taxes?" "Can I switch my contribution to a different loan?" You can ask anything about your loans, your enrollment, PSLF, or taxes. Maurice answers in plain English, around the clock, no HR ticket required.
Ask MauriceFrequently asked questions
Ready to start paying down your loans?
Powered by your employer's BenefitPlus plan.