Student loan repayments are excludable through 2025, IRS reminds employers
Posted by DaveMoll on Aug. 12, 2025 / Subscribe 0
The IRS has reminded employers that they may continue to offer student loan repayment assistance through educational assistance programs until the end of the tax year at issue, December 31, 2025.
Under current law, employers can contribute up to $5,250 annually per employee toward student loan repayments without the amount being treated as taxable wages. This benefit, initially expanded as part of pandemic relief legislation, permits individuals to receive tax-free assistance for qualifying student debt.
Employers may incorporate student loan repayment as part of their existing educational assistance programs, which typically include coverage for tuition, books and related education expenses.
SOURCE: IR-2025-81, IRS News Releases, August 6, 2025.
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