Recent Federal stimulus legislation included a provision that extends an employer’s ability to provide a student loan repayment benefit to employees on a tax-free basis before January 1, 2026. Under this provision, an employer may contribute $5,250 annually toward an employee’s student loans and/or education expenses (e.g., tuition, fees, books). Such payment would be excluded from the employee’s income. The provision applies to any student loan payments made by an employer on behalf of an employee before January 1, 2026.

To remain IRS compliant and qualify for the tax-free benefit, the employer needs to make this benefit available at their organization by including a detailed HR policy in their employee handbook.

No, RISLA does not require a minimum participation number or minimum contribution.

RISLA will help your organization tailor a program that best fits your needs. Contributions range from small monthly payments, often $50 to $200, to larger quarterly and yearly sums. Programs can be further customized to increase year after year as a retention incentive or be prorated based on hours worked.

There are several acceptable payment methods that will largely depend on the sum and frequency of your contributions.

Request a demo and include any questions you might have. After the initial kick-off call and once a contract has been executed, implementation is very quick and can generally be completed in a matter of days.