"Unlocking Hidden Potential: How a Little-Known Tax-Free Benefit Eases Student Loan Burdens for Employees"

The IRS is reminding employers that they can offer workers up to $5,250 tax-free as part of their educational assistance benefits, including help with student loan payments. While companies have been allowed to offer such benefits since 2020, only 8% of organizations currently offer student loan benefits to employees. Lawmakers are concerned about the lack of public awareness and have asked the IRS to increase outreach. Reimbursements of up to $5,250 a year can significantly help individuals paying down student loans, especially as the pause on federal student loan payments is ending.