EAPs can help pay employee student loans through 2025

The IRS recently issued a reminder that employers can continue to use educational assistance programs (EAPs) 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 without those payments being counted as taxable wages. This provision, originally expanded by pandemic relief measures, allows workers to receive tax-free help paying down qualifying student debt.

Employers can include student loan payments as part of their broader educational assistance programs, which traditionally cover tuition, books, and other education expenses.

See Publication 15-B, Employer’s Tax Guide to Fringe Benefits, for more information about setting up or administering educational assistance plans.