One of Congress’s economic responses to the COVID-19 pandemic is a temporary tax incentive for companies to help employees pay their student debt.
Until the end of 2020, employers can contribute up to $5,250 toward an employee’s student loan balance and the payment will be free from payroll and income tax under a provision in the Coronavirus Aid, Relief and Economic Security Act.
A separate provision in the act temporarily suspends monthly payments due on federally held student loans through Sept. 30 with 0% interest. Read more.