Keeping Retirement Plans and Student Loan Assistance separate create the best outcome for employers and their teams

by Joe Kwasniewski | Nov 12, 2024 | Benefits, Decisions, Differentiation, Employee Benefits, Financial Wellbeing, Human Capital, Human Resources, Insights, Plan Design, Program Management, Student Loan Assistance, Student Loan Debt, Student Loan Repayment

It has now been close to a year since the Secure Act 2.0 was approved and options were added for employers to tie their retirement plans to other programs like Student Loan Assistance. In our experience, this hasn’t been taken up as a common approach for employers....

Is the SAVE Student Loan Repayment plan making a difference for your employees?

by Joe Kwasniewski | Nov 12, 2024 | Benefits, Differentiation, Employee Benefits, Employee Engagement, Features, Financial Wellbeing, Government Relations, Human Resources, Plan Design, Student Loan Assistance, Student Loan Balance, Student Loan Debt, Student Loan Repayment

Nationwide, many individuals are utilizing the SAVE plan to lower monthly payments on their student loans and in their minds putting themselves in a better position financially. The SAVE plan is income-driven and payments are altered by each unique person’s earnings....

Private Letter Ruling Adds Unnecessary Complexity to Student Loan Assistance

by Joe Kwasniewski | Oct 11, 2024 | Benefits, Decisions, Differentiation, Employee Benefits, FAQ, Features, Human Resources, Insights, Plan Design, Program Management, Student Loan Assistance, Student Loan Repayment, Tax-free

In a recent statement from the IRS, an unnamed employer received access through a private letter ruling to defer 401k matching dollars to student loans through a Section 127 plan tax-free. Similar to the private letter ruling Abbott Labs received in 2018 to count...

Supreme Court rebuffs Biden administration plea to restore multibillion-dollar student debt plan [AP News]

by Joe Kwasniewski | Oct 11, 2024 | Benefits, Decisions, Differentiation, Employee Benefits, Employee Engagement, Financial Wellbeing, Government Relations, Human Resources, Insights, Student Loan Assistance, Student Loan Repayment

White House attempts to relieve portions of student debt the US workforce faces have continued to get struck down by the Supreme Court. Alluding to the consistent verdict that no widespread forgiveness is coming for borrowers.  In a recent post from AP News, another...

Tax-Free Student Loan Repayment, Here to Stay

by Joe Kwasniewski | Oct 11, 2024 | Benefits, Decisions, Differentiation, Employee Benefits, Financial Wellbeing, Human Resources, Plan Design, Program Management, Student Loan Assistance, Student Loan Repayment, Tax-free

First through the CARES Act in 2020, then the Consolidated Appropriations Act of 2021, and now through an in progress bipartisan bill in 2024. Tax-free Student Loan Assistance is once again making a statement to remain an option for employers looking to stand out in...

Peanut Butter Insights: Do Employers Typically Cap Their Total Student Loan Contributions?

by Joe Kwasniewski | Oct 4, 2024 | Benefits, Decisions, Differentiation, Employee Benefits, Employee Engagement, FAQ, Features, Financial Wellbeing, Human Resources, Insights, Plan Design, Program Management, Student Loan Assistance, Student Loan Repayment

In our discussions with potential clients, employers commonly ask about lifetime maximum caps on their student loan contributions for employees. Hoping to draw comparisons to other benefits. In this post, we’ll describe the best practices surrounding this concept. In...