Employers can provide tax-exempt student loan contributions.
BUFFALO GROVE, IL – April 1, 2020 – The Coronavirus Aid, Relief, and Economic Security Act (H.R. 748), also known as the CARES Act, is the largest-ever economic stimulus package. The CARES Act includes temporary passage of U.S. Rep. Rodney Davis’ (R-Ill.) bill (H.R. 1043) allowing a tax exemption for employers to help pay down employees’ student loan debt through the end of the year.
“Student debt is the second highest form of consumer debt, and we continue to see that be an issue now as our economy is on hold because of COVID-19,” said Davis. “President Trump has taken steps to ease the burden of student loans and this creates a private sector approach to addressing debt. This tax-free benefit will not only help address the student debt crisis, but also help employers remain competitive with recruiting and retaining employees.”
“We are grateful for the leadership of Congressman Davis who has been a huge champion in this effort to help students and employers come together for mutual benefit,” says Raj Rajan, CEO of IonTuition.
Companies like IonTuition engaged in the work of helping students will now be able to work closely with employers to help improve financial wellness around student debt.
IonTuition provides the industry’s most comprehensive suite of student loan benefits, complete with student loan management, expert student loan counseling, ROI-based college selection, unbiased refinancing, and comprehensive contribution options. Leading companies are offering student loan benefits as a way to acquire and retain in-demand, educated talent. IonTuition is easily implemented into any organization and offers up-front, affordable pricing. IonTuition has been providing tools surrounding post-secondary education since 2011.