Would You Trade PTO For Student Loan Repayment Help?

Trading PTO For Student Loan Repayment Help

Would you give up a vacation week to erase some of your student debt? Allowing employees to convert unused paid time off into extra student loan payments is an gaining traction. In a recent report, Fortune highlighted how some borrowers are even ditching PTO to get a payment boost on their student loans. In other words, instead of letting unused vacation days expire or rollover, employees can cash them out to chip away at college debt. This reflects both evolving workplace benefits and the financial pressures facing millions of Americans carrying student loans. Over 40 million Americans have federal student loan debt. With student payments and collections resuming after the pandemic pause, creative ways to tackle balances, like PTO for student loan repayment help, could resonate with many student loan borrowers.

Employers Let Staff Convert PTO For Student Loan Repayment Assistance

Several forward-thinking employers now allow workers to convert paid time off to student loan payments. Insurance firm Unum pioneered this approach in 2019, offering U.S. employees the option to exchange accrued but unused PTO for direct student debt payments. “This innovative solution gives employees a choice to use their benefits in ways that work best for them,” Carl Gagnon, Unum’s assistant vice president of global financial well-being told Benefits Advisors Network. Starting in 2020, Unum employees could carry over 40 hours of unused PTO each year and transfer that into a student loan payment. By mid-2020, 428 Unum employees had used the program, collectively directing over $528,000 of PTO value toward their loan balances. This approach helped employees pay down debt faster using otherwise idle PTO value without the company having to add an expensive new benefit.

Another example is MassMutual, the insurance and financial services firm. In 2022, MassMutual introduced a program enabling employees to convert up to five days of unused vacation time into a student loan payment. The company announced this perk as federal loan payments were set to resume, noting the heavy college debt burden many workers carry into their careers. By offering a PTO-for-loans swap, MassMutual aims to support employees’ financial wellness without incurring additional costs.

It’s not just insurers getting creative, platforms like PTO Exchange partner with employers across industries to facilitate these conversions. PTO Exchange’s software enables employees to trade unused PTO for student loan payments, retirement contributions, or even emergency cash, depending on the employer’s offer. “We are firm believers that PTO is an earned wage and individuals should be able to self-direct it for what matters most to them,” Rob Whalen, CEO of PTO Exchange told Inc. His company recently celebrated a milestone of 1 million hours of PTO exchanged (about $54 million worth), reflecting surging interest in convertible PTO benefits.

Why PTO For Student Loan Repayment Help Is Trending Now

This trend of trading PTO for student loan repayment is taking off in 2025 for a few key reasons. First, federal student loan repayments have resumed after a three-year pandemic pause, straining household budgets. Companies are under pressure to attract and keep talent in a competitive labor market and student loan repayment benefits could be a popular enticement. The share of employers offering direct student loan contributions doubled from 4% to 8% between 2018 and 2019 and has likely grown since. In its 2025 benefits report, Goldman Sachs Ayco mentioned that there has been a four percentage point increase in the number of its corporate partners who have a PTO for student loan repayment program since 2021.

Evaluating The PTO For Student Loan Repayment Opportunity

Like any benefit, converting PTO to student loan payments has pros and cons. On the one hand, it’s an easy way to accelerate debt payoff. Even a few hundred dollars from unused PTO can chip away interest and principal, potentially saving borrowers thousands and shaving months or years off the loan term. For employees who tend to leave vacation days unused, opting to cash out PTO for student loan help can be a smart financial move. It also empowers borrowers to direct earned benefits toward their most pressing financial goal.

On the other hand, utilize the program could mean sacrificing rest and recovery. Paid time off exists to prevent burnout and promote work-life balance. Converting too much PTO to cash could encourage people to skip vacations, which may hurt productivity and well-being in the long run. Employers offering this perk often caution that they don’t want to incentivize not using PTO. Some cap the amount you can exchange to ensure workers take ample time off. Another consideration is the financial trade-off: PTO payouts might be taxed as ordinary income (unless structured carefully under an educational assistance program), and not all employers will match the full value.

Some critics go further, arguing that workers shouldn’t be forced to choose between their mental health and financial health. “Tying student loan repayment to forfeiting PTO is a trade-off no worker should have to make,” HR consultant Bryan Driscoll told Newsweek, reflecting concern that this trend, if misused, could undermine employee wellness.

The Upshot Of PTO For Student Loan Repayment Help Programs

If you have plenty of PTO and aren’t using it all, utilizing a PTO for student loan repayment program and trading a few days of unused vacation time for repayment assistance could be a savvy way to get student loan help from your employer. Think of PTO-for-loan programs as one tool in your toolbox: A complement to other strategies like income-driven repayment plans, refinancing, or employer 401(k) matching on loan payments.