Cares Act Student Loan Reimbursement. In addition, the interest on these federal student loans will automatically drop. Under the coronavirus aid, relief, and economic security (cares) act, employers can now make nontaxable payments of up to $5,250 to employees as student loan repayment assistance, but only if the payments are made by december 31, 2020, under an educational assistance program that meets the requirements of internal revenue code (code) section 127.
Under the coronavirus aid, relief, and economic security (cares) act, employers can now make nontaxable payments of up to $5,250 to employees as student loan repayment assistance, but only if the payments are made by december 31, 2020, under an educational assistance program that meets the requirements of internal revenue code (code) section 127. What to know employers can now help their employees pay down student debt faster and save a significant amount of. Ad mpower provides financing for international students studying in the u.s.
What to know employers can now help their employees pay down student debt faster and save a significant amount of.
Specifically, the cares act amended section 127 of the internal revenue code (code) to provide that payments of up to $5,250, made before january 1,. The cares act, the sweeping stimulus legislation enacted in march, includes relief for student loan borrowers. Section 2206 of the cares act allows a portion of student loan payments to be excluded from income. The coronavirus aid relief and economic security act (the “cares act”) provides a way for employers to help repay employee student loans, with tax benefits for both the employer and employee.
