I’m looking for an agreement that sets up a company’s ability to give an employee a loan and then forgive that loan over time. For example, the employer wants to give an employee money for tuition and then forgive the loan as the employee stays with the company over the next several years.
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Thank you for your inquiry and request for an agreement for employee loan forgiveness. While we do not offer an agreement specifically meeting these requirements, you may find the following documents helpful as a starting template to construct a personalized agreement to meet your specific needs.
This sample Tuition Assistance policy includes language regarding financial assistance in the form of interest-free loans for an approved program of study. The policy also includes additional provisions regarding limitations on the types of educational programs covered by the program, which may also be of use.
Additionally, this sample Employee Education Assistance policy uses the approach of tuition reimbursement (rather than an employer loan); however, it also includes language regarding the expectation that the employee assume responsibility for the tuition expenses if he or she voluntarily leaves the company within one year. This language could be tailored to provide, instead, for forgiveness of a percentage of the loan as the employee remains employed for the set period of time.
Note: We are making these policies free for a limited time for the benefit of our ‘Benefits in 5’ subscribers.