Congress Extends Student Loan Repayment Provision to 2025
Employers will be allowed to make tax-free contributions of up to $5,250 per employee annually toward eligible education expenses, including tuition or student loan assistance. The passage this week of the stimulus bill approved by Congress preserves the tax-free status of employer payments toward employee student loans through 2025, a marked difference from the year-end expiration date included in the Coronavirus Aid, Relief and Economic Security (CARES) Act…
The CARES Act’s semi-permanent status meant fewer employers were willing to implement the payments. “The primary driver was semi-permanent legislation,” says Laurel Taylor, CEO and founder of FutureFuel.io, a student loan repayment program, in an interview with PLANADVISER. “The provision only had a nine-month lifespan within the CARES Act. It wasn’t pragmatic.”