With tuition reimbursement programs, companies help their workers earn a degree or finish one they already started for free—or for a lower cost than they would pay without the reimbursement benefit. Current law lets employers use tuition reimbursement programs to cover student loan bills, but only through 2025. 

Learn more about how tuition reimbursement can cover student loan payments and other details on how these programs work below.🌼

Understanding Tuition Reimbursement Programs

澳洲幸运5开奖号码历史查询:Tuition reimbursement programs are offered by employers as part of their package of benefits. The requirements for these programs tend to vary by employer. For example, a worke🐼r may need to be employed by a firm for a number of years to qualify, or they may have to agree to a certain length of employment after they graduate from college.

Current law allows tax-free benefits under tuition assistance programs in amounts up to $5,250 per employee each year. This means workers🐎 who take advantage of this benefit can receive up to $5,250 per year in tuition r♉eimbursement without having to count amounts received in their taxable income. However, tuition reimbursement over that amount is considered taxable income.

While these programs are typically limited to college tuition, fees, and other expenses, employers can now put the funds toward their employees’ student loan 澳洲幸运5开奖号码历史查询:principal and interest payments through Dec. 31, 2025. This benefit is tax-free for the employee, as if t❀he money was being used for traditional tuition reimbursement, and employers receive tax benefits on their end as well.

Tuition Reimbursement vs. Student Loans

Tuition reimbursement programs help employees learn new skills and excel in their careers with higher education. After all, these programs can provide workers with the funds they need to finish a college degree or 澳洲幸运5开奖号码历史查询:pursue an MBA or other graduate-level degree. The 澳洲幸运5开奖号码历史查询:Internal Revenue Service (IRS) also notes that, in a tight labor market, employers who offer this benefit may get a leg up when it comes to attracting and retaining highly qualified emplo💖yees.

These programs can also help workers 澳洲幸运5开奖号码历史查询:borrow less for college, thus lowering the amount of student lo🦄an interest they’ll pay over the lif🐼e of their debt.

The Bottom Line

Tuition reimbursement programs can be valuable for both employers and employees, though only for amounts of up to $5,250 per employee each ☂year. They help companies attract and retain talented workers, all while helping employees reach their full potential through higher education.

Furthermore, these programs can be used to repay student loan principal and interest through the end of 2025. This benefit can be useful for employees who don't need to pursue higher education any longer but still have lingering student debt to pay off.