Last summer we were surprised to learn that IRS approved a way to allow employers to assist their employees with student loan payments on a tax-advantaged basis. I covered it in this blog post. Now a range of new proposals are on the table that are likely to propel this benefit forward. Two of the proposals caught my attention:
An employee benefit plan that trades off of an employee’s paid leave for an after-tax loan payment seems likely to be popular and successful.
On the other hand, a proposed student loan payment benefit provided to young employees who stay on their parents’ health plans would be problematic and not likely to fly.
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