Stimulus Package Student Loans Employer

Here s what the stimulus package means for you student loans.

Stimulus package student loans employer. On december 27 2020 president donald trump signed into law a 900 billion pandemic relief bill that provides extended relief for qualified student loan borrowers. Known as the heroes act the stimulus package is a win for borrowers seeking student loan repayment from their employers. The cares act the 2 2 trillion stimulus passed in march provides a tax.

Here s what you need to know. The provision will expire in five years although experts. Employers are allowed to make tax free contributions up to 5 250 a year toward their employees student loans.

Approved in both the house of representatives and the senate and currently awaiting president donald trump s signature the bipartisan package the second biggest in u s. History allows employers to help pay employees student loans through 2025. In many ways the new stimulus package is a net loss for student loan borrowers who were hoping for student loan relief or student loan forgiveness.

Under the cares act the 2 2 trillion stimulus package that congress passed in march there is a tax incentive for employers to help their employees with student loan repayment. Many borrowers aren t aware but your employer can help pay your student loans. Congress dropped student loan relief from the new stimulus package which means your federal student loan payments will resume on january 31 2021.

Companies can take advantage of the tax benefit through. Employers to make tax free payments of up to a maximum of 5 250 per employee between march 27 2020 and december 31 2020. The cares act allows.

Your employer pays off student loans. Both federal student loans and private student loans to be eligible. The benefit is set to go until the end of 2025.