Student Loan Employee Benefits Are Now Tax Advantaged
Employers Can Help Repay Employee Student Loan Debt as a Tax-Deductible Business Expense
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PHOENIX, Jan. 13, 2021 /PRNewswire/ -- With the Consolidated Appropriations Act, 2021 signed into law on Dec. 27, a key benefit for employers and employees paying down educational debt with student loan repayment assistance programs has been extended.
The provision of the CARES Act that expanded Section 127 of the Internal Revenue Code to cover employer contributions to student loan repayment on a tax-free basis was due to expire on Jan. 1, 2021. However, the provision has been extended for five more years, granting employers and employees tax advantages for student loan repayment assistance until Jan. 1, 2026.