Summary:
The Internal Revenue Service (IRS) has issued a reminder that employers can continue to use educational assistance programs to help employees pay down student loans through December 31, 2025. Under current law, employers may contribute up to $5,250 annually per employee toward student loan repayment, and these payments are not counted as taxable wages. This provision, originally expanded by pandemic relief measures, allows workers to receive tax-free help paying down qualifying student debt.

Key Points:

• Employers can contribute up to $5,250 per year, per employee, for student loan repayment, tax-free.
• This benefit is available through December 31, 2025.
• Student loan payments can be included as part of broader educational assistance programs, which also cover tuition, books, and other education expenses.
• For more information, employers should refer to IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits.