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Converting unused vacation time into a student loan debt payment benefit can be a win-win

As the pandemic persists into 2021, employees continue to delay taking their paid time off (PTO) due to delaying travel and vacations, and feelings about job security. 

Time away from work is important for physical and mental health so employers are encouraging employees to use their vacation days. However, some employers have mounting concerns over the increasing build up in PTO days carried over from 2020 and new time accruing for 2021.  

One solution to this dilemma is to allow employees to convert some or all of their unused vacation time into a one-time student loan debt payment. This can be a win for employers and a win for employees.

  • Win for employers: Thanks to the stimulus bill approved by Congress at the end of 2020, employers may now pay a tax-free benefit up to $5,250 annually towards each employee’s student loans through the end of 2025.  This can help employees reduce financial stress by paying down their student loans, leading to a more productive workforce.    
  • Win for employees: Voya research has found that 96% of individuals with student loan debt would be likely or very likely to save more for retirement if they felt like they had their student debt under control.1

Voya Financial has teamed up with Vault, an industry-leading student loan benefit technology provider, to offer a PTO conversion solution:

  • Employers can set custom “exchange rates” for converting PTO (paid time off) into one-time student loan debt payments
  • Vault makes converted PTO payments directly to the employee’s student loan provider on the employer’s behalf


Reach out to your Voya Relationship Manager to learn more about Vault™ student loan debt benefit solutions.

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Vault is a separate entity and not a corporate affiliate of Voya Financial. Voya clients receive discounted pricing on any Vault product. Vault pays Voya Retirement Insurance and Annuity Company (VRIAC) an ongoing quarterly marketing fee for referring plan sponsors that elect Vault’s student loan debt services.

1 Findings from Voya’s Financial Wellness Survey (as of November 30, 2020).