Expand Employee Student Loan Repayment Benefits!
Thanks to a provision in the CARES Act, employers can now pay up to $5,250 of employees’ student loans tax-free through the end of this year! Employers will be more likely to offer student loan repayment benefits to employees, because they won’t have to pay extra to do so. This is great for two reasons:
1. 401Ks and dental insurance are great, but what young employees really want from their employers is student loan repayment assistance. In a survey of our membership, 86% of AYA members said they’d be more likely to seek employment at companies and organizations offering the tax-free student loan repayment benefit than those that do not. 71% said that the benefit would enable them to better invest in their futures, and 72% said they’d be less stressed financially and more productive at work.
2. Currently, only around 8% of employers offer a student loan repayment benefit. If employers across America embrace student loan repayment as the next major workplace benefit, America could knock out as much of one third of the student loan debt burden in just a few years.
Here’s the thing: the provision is only set to last 9 months. It’s critical that we convince Congress to make the provision permanent , so employers will continually be incentivized to offer employee student loan repayment assistance. Help us urge Congress to expand this benefit and make it a permanent part of our tax code!
The CARES Act has enabled employers to pay up to $5,250 of employees’ student loans tax-free through the end of this year. Help us urge Congress to expand this benefit and make it a permanent part of our tax code!