Employers that offer educational assistance programs to their employees now have greater flexibility in how these programs work. Through Dec. 31, 2025, the funds can be used to help employees pay their federal student loan debts. According to the Education Data Initiative, borrowers in 2023 have average federal student loan debt of $37,338. Offering assistance with that debt can be an effective tool for attracting new recruits and retaining talent. Student loan payments can be made directly to employees or lenders. These tax-free benefits are limited to $5,250 per employee, per year. Benefits that exceed that amount are taxable as wages. Other rules also apply. Contact us with questions.
Our Blog 