Student Loan Benefits are now Tax-Free

Christian Rhodes
March 27 2020
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Student Loan Benefits are now Tax-Freecover

This morning the House passed the stimulus measures aimed at bringing relief to millions of Americans who will be deeply affected by the pandemic crisis. After passing the House, the $2 Trillion stimulus package was signed into law by President Trump this afternoon. The bill is the single largest relief measure that has ever been assembled and passed that is specifically geared towards providing billions of dollars of relief for businesses, their employees, and Americans alike. 

Some of the specific measures will put $1,200 right in the pockets of millions of Americans who desperately need it. Billions have been allocated for small businesses to take out 0% loans in order to bridge this crisis and allow them to make payroll. The biggest win for the 45 million student borrowers was a provision added that removes the income tax paid on employer contributions towards student loans. What this means is that any contributions towards student loans that are made by the company are no longer taxable income. 

Employers are in a position to ensure that their employees with student loans have extra cash in their pockets until this global pandemic is over. When you couple this relief measure with the frozen interest on all federal loans, the time for employers to step up has never been more clear. The government took the step of making the incentive, and now it is time for companies to act.

Goodly's platform allows employers to make payments directly to employees’ student debt. Reach out to [email protected] or book time here to learn more about how Goodly can support your team and provide much-needed, immediate relief to those individuals who may be facing economic hardship during this time of uncertainty. 

 

WRITTEN BY
Christian Rhodes
March 27 2020