On August 28, 2024, the Internal Revenue Service (IRS)
issued a reminder that employers who offer educational assistance programs can also use them to help pay for their employees’ student loan obligations through December 31, 2025.
IRS noted that though educational assistance programs have been available for many years, the option to use them to pay for workers’ student loans has only been available for payments made after March 27, 2020. Under current law, this student loan provision is set to expire December 31, 2025.
The IRS news release also included that traditionally, educational assistance programs have been used to pay for books, equipment, supplies, fees, tuition and other education expenses for the employee. These programs can now also be used to pay principal and interest on an employee’s qualified education loans. Payments made directly to the lender, as well as those made to the employee, may qualify.
More information can be found on the IRS site
here.