Payers should check with their employers concerning Educational Assistance Programs. A simple call to the Human Resource Department asking about this benefit may save you money.
Your employers can now use this program to help with your student loan obligations. This is a special provision option to help pay down student loans. It has been available since March 27, 2020 and will continue until December 31, 2025.
Traditionally, the Education Assistance Program has been used to pay for tuition, books, etc. It has been mostly used by employees that attend classes part-time while working full time. Now this program can be used to pay principal and interest on employee’s qualified educational loans. The payment can be made directly to the lender OR to the qualified employee. The program is limited UP to $5,250. per employee per year. Payments over this amount per year will be taxable as income to the employee.
This program helps both the employee and employer. Employers will attract better qualified employees and be able to retain them. Employees will be able to relieve their debt expeditiously.
Check with your employer NOW. This program, at present, will ONLY be available until December 31, 2025.