Total student loan debt nationwide (including federal and private loans) is currently $1.75 trillion. The average borrower he borrowed $28,950. Additionally, the average student loan payment is $460 per month and it usually takes the average borrower about 20 years to pay off the debt.
So it’s safe to say that people need help paying their balances. Fortunately, your employer may be able to help.
Through the CARES Act, Americans were given immediate assistance to offset the financial hardships caused by the pandemic. . What many may not know is that the law stipulates that employers must pay up to $5,250 in tax-exempt annual payments directly to their employees’ federal student loans.
This is not a new concept. Several companies across the country have provided student loan repayment assistance for years, but this new provision within the CARES Act makes employer contributions completely tax-free.
If your employer hasn’t mentioned this yet, it might be time to bring it up.
I recently learned that employers can offer student loan repayment assistance as an added benefit.
CARES Act Section 2206 Employers say they can make tax-free payments of $5,250 a year directly into each employee’s federal student loans. This he was due to be introduced only in 2020, but has been extended until December 31, 2025. Section 120 of Division EE in the Consolidated Appropriations Act of 2021. A summary of the provisions is available on the National Law Review website.
Personally, I have a federal student loan (insert federal loan total) and my monthly payment is (insert monthly payment). I’m sure I’m not the only one feeling the pressure of student loan debt, so I wanted to speak up and advocate for the needs of this company’s employees.
Would (insert company name here) consider offering this benefit in the future?
(your name here)