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 the market for attracting + retaining talent, and this time it should be made permanent. Something our team at Peanut Butter has been a part of, and pushed for since its inception.
Over the past 4 years, this concept surrounding Student Loan Repayment offered by employers has been implemented by thousands of groups. SHRM has also made it clear that they are large supporters of this legislation as well. Stating ‘…it incentivizes employees to take advantage of employer-funded education and loan repayment opportunities without the concern of a tax penalty for doing so. Employers benefit, as well, because their contributions to employees are generally deductible as a business expense…’ and a benefits differentiator.
For those who haven’t yet acted on this legislation and implemented a Student Loan Assistance program over the past few years, now is the time. As this new bill is inevitably made official, those who act now will be rewarded, standing out next to 9 of their top 10 competitors as one of the less than 10% of employers offering a program nationwide.