January 14, 2021

Maryland Department of Commerce and Higher Education Work to Promote Employer Student Loan Repayment Assistance until 2025

Maryland Department of Commerce and Higher Education Work to Promote Employer Student Loan Repayment Assistance until 2025


BALTIMORE, MD (January 13, 2021) – Maryland Commerce Secretary Kelly M. Schulz and Maryland Higher Education Commission Secretary Dr. James D. Fielder are partnering to help promote one of the key benefits of the new federal stimulus bill, which extends employer student loan repayment assistance until 2025. Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, which offered a tax incentive for employers to help their employees with student loan repayment.  The new stimulus bill signed on December 21, 2020, extends the ability for employers to make tax-free student loan repayment contributions for employees until 2025.  As with other forms of employer-provided educational assistance previously included in the law, the amount of the payments is capped at $5,250 per year per employee and is excluded from the employee’s taxable income.

“This is a significant benefit that businesses can offer employees, potentially helping retain staff and also as a valuable tool to recruit new employees,” said Secretary Schulz. “As we have done since this pandemic began, we want to make sure that Maryland businesses are aware of the many benefits of the CARES Act and other federal relief programs.”

“The goal of the Maryland Higher Education Commission (MHEC) continues to be student success with less debt,” Secretary Fielder said.  “This federal extension offers a great opportunity for employers to participate in a partnership that is mutually advantageous for the employers and employees.”





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