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Workplace Student loan Installment System: 5 Strategies for 2022

Workplace Student loan Installment System: 5 Strategies for 2022

The next Takeaway

  • More step 3.dos billion pros have more than just $one hundred,000 inside education loan obligations.
  • Companies could possibly offer doing $5,250 inside the education loan payment pros tax-totally free compliment of 2025.
  • Firms that offer student loan debt relief is more readily attract and you will keep ability.

As voluntary turnover hits record highs, employers are on the lookout for any edge in the fight to attract-and retain-top talentpanies are getting increasingly creative in the benefits they offer employees and, with student loan debt skyrocketing, repayment programs can be an glamorous perk. The good news is, these programs recently became more affordable.

Education loan fees programs: today income tax-totally free

Through 2025, employers can offer up to $5,250 in student loan repayment benefits without paying a dime in tax. This is thanks to the Consolidated Appropriations Act, signed into law late 2020 as part of pandemic relief efforts, which expanded Section 127 of the IRS code. The number of companies offering repayment programs is nonetheless small, but likely to rise going forward, especially after the current moratorium on student loan repayment ends .

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