Within the over $2 trillion stimuli bundle introduced last few days to incorporate save in the middle of the brand new pandemic for the reason that the new book coronavirus, a supply try provided to allow a tax break getting annual company efforts with the their employees’ education loan personal debt.

New provision in the Coronavirus Support, Rescue, and you can Economic Safety (CARES) Operate – maybe skipped in the midst of the news headlines out-of instantaneous recovery through the short-term suspension from monthly student loan money – allows an employer to help you contribute up to $5,250 a year toward a keen employee’s college loans, therefore the payments could well be excluded from the employee’s earnings. Brand new $5,250 maximum applies cumulatively so you can the the fresh new student loan payment work for and also other academic guidelines, eg university fees reimbursement otherwise currency to own instructions and you will materials.

This new provision has created each other complaint and you can applause having allowing employers for taking advantage of the newest tax crack, with critics arguing brand new provision simply assist high-income gurus just who have jobs and are generally currently able to pay-off its student education loans, whenever you are starting nothing for those who very need assistance. Continue reading A friend bill has also been delivered in the house →