Tax Tip #167
Ralph Loggia • October 31, 2023
Student Loan Interest Not Forgiven? Here is A Way to Reduce That Debt & It Doesn’t Cost A Penny
Employers that offer qualified educational assistance programs can pay down up to $5,250 of an employee’s college loans each year through 2025.
Payments are excluded from workers’ wages for tax purposes. The employer receives a tax deduction & saves on social security tax.
The employer needs to have an accountable plan that must be in writing and cannot discriminate in favor of highly compensated employees.
Have student loans? Ask your employer if this employee benefit plan is in place.
