IRS Reminds Employers: Educational Assistance Programs

Summary:The Internal Revenue Service (IRS) has issued a reminder that employers can continue to use educational assistance programs to help employees pay down student loans through December 31, 2025. Under current law, employers may contribute up to $5,250 annually per employee toward student loan repayment, and these payments are not counted as taxable wages. This provision, originally expanded by pandemic relief measures, allows workers to receive tax-free help paying down qualifying student debt.Key Points:Employers can contribute up to $5,250 per year, per employee, for student loan repayment, tax-free.This benefit is available through December 31, 2025.Student loan payments can be included as part of broader educational assistance programs, which also cover tuition, books, and other education expenses.For more information, employers should refer to IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits.