DEBT REDUCTION PROGRAM
An opportunity for employers to December 31, 2025
This temporary program differs from traditional Student Loan Repayment Programs (SLRP) offered by many employers in that the CARES Act relief is entirely tax-free to the employee, whereas SLRP payments are fully taxed, as much as 40% depending on the employee’s tax bracket and other factors.
It is, most likely, a one-time chance for employers to really make a difference for their employees, making it an excellent retention and recruiting tool in this difficult period.
Is the CARES Act program to repay employee student loans right for your company?
Chances are, if you have technical, managerial, or professional staff in your employ, you have workers struggling to repay student loans. Two-thirds of college graduates leaving school in 2018 had an average student loan debt of $29,200.
Unable to get out from under this debt in a reasonable time can be detrimental to your employees’ access to other credit, such as a mortgage, auto loan, and other household lending. This has a major impact not only on the employee’s quality of life but on wealth creation and the economy as a whole.
Taking advantage of this one-time chance to provide a much-needed tax-free benefit to help repay employee student loans can pay big returns for everyone.
Optional, but highly
The CARES Act