Student loan repayment programs for tuition and related expenses are most commonly set up as direct payment to the loan servicer, however this becomes most effective for loans not based on the employee’s income. Income-Based Repayment (IBR) plans differ from standard types of student loans, therefore there are two types of sample policies provided.
UPDATE: On December 27, 2020, President Trump signed The Consolidated Appropriations Act, 2021, which updated the Coronavirus Aid, Response, and Economic Security (CARES) Act allowing employers to contribute up to $5,250 toward an employee’s student loan. Payments are excluded from the employee’s income between March 27, 2020 and December 31, 2025.
