When meeting with potential clients and partners, one of the common questions we get on program best practices surrounds spouse and family member participation.
To answer this question, no, an employee must be listed as the primary borrower on the student loan in order to qualify for Student Loan Repayment. This is key for tax-free compliance under section 127 and in taxable plans to avoid any implications of processing payments to somebody not employed by the company. Causing potential issues. That said, on the Student Loan Resources side of things, many employees use the My Loans page and the Action List to organize and manage student loans for family members. Helping them receive tools to support managing their debt.
When offering Student Loan Repayment to your team, be sure to follow this best practice to ensure the most success in your program and avoid any compliance pitfalls. To learn more about other best practices and answer questions, visit our FAQs page @ https://www.getpeanutbutter.com/faqs/.