One questions that comes up during meetings with clients and prospects is, if we choose to offer Student Loan Repayment are company contributions applied toward our employees’ principal balance?
To answer that question. Employer-sponsored contributions are applied according to the terms of the employee’s loan agreement with the lender and/or loan servicer. We’ll provide guidance to employees in their account on ways to communicate with their loan servicer and request excess payments be applied to principal when possible. So many times this may be the case, yes. But others it is not, based on the terms employees have agreed to.
To read more about other insights and frequently asked questions, check out our FAQs page: https://www.getpeanutbutter.com/faqs/