Federal Tax, Tax

Educational Assistance Programs Can Offer Student Loan Help

If your company has an educational assistance program, you can use it to help pay employees’ student loans from now until Dec. 31, 2025. Funds from your program may be used both for loan principal and interest, and payments can be made directly to lenders or employees. You can provide tax-free benefits of up to $5,250 per employee per year. Any benefit above that amount is taxable as wages. Other rules apply. If you don’t already have a program, consider establishing one. At a time when the average person with student loan debt owes more than $37,000 (according to the Education Data Initiative), debt assistance can help your business recruit and retain talent. Contact us for information. © 2023