Chicago Business Attorney Blog
Repayment of Student Debt by Employers
Retaining employees, and attracting new ones, has always been at the forefront of employer’s minds, but never more so than right now. An extension of the student loan repayment plan for employers is one attractive way to stabilize your workforce.
The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) extended tax-free employer sponsored student loan repayment through 2025. This means that employers can give each employee up to $5,250 of non-taxable money to pay off student loans per year. The amount the employer contributes is deductible by the employer and it is not income to the employee. It is the best situation for both employer and employee!