STUDENT LOANS and the CARES ACT
The Coronavirus Aid, Relief and Economic Security Act expands the definition of educational assistance to allow employers to pay principal and interest on an employees student loan.
- Employees do not have to include any payments in income
- Employers get a deduction from earnings for payments made
- All prior items allowed as educational assistance remain the same
These payments must be:
- Made between March 27, 2020 and before January 1, 2021
- The $5,250 yearly maximum remains the same