1.How well does your student loan repayment program leverage the §127 exclusion (up to $5,250/year tax-free) for employer-paid student loan repayment?
The CARES Act §2206 extension (now permanent) allows employers to pay up to $5,250/year toward employee student loans tax-free under §127.
2.How thoroughly have you evaluated the SECURE 2.0 Act provision allowing employers to make 401(k) matching contributions for employees making student loan payments?
SECURE 2.0 §110 (effective 2024) allows employers to treat student loan payments as elective deferrals for matching purposes. This is a significant recruitment and retention tool.
3.How well have you assessed the student loan burden in your workforce and the potential impact of a repayment benefit on recruitment and retention?
45 million Americans have student loan debt averaging $37,000. Student loan benefits are most valued by younger workers and those in high-debt professions.
4.How well does your student loan benefit design (monthly contribution, eligible loans, vesting, service requirement) balance employee value with employer cost?
Common designs: $50–$200/month employer contribution, all federal and private student loans eligible, 1–2 year vesting or service requirement.
5.How effectively is your student loan benefit administered, including loan verification, payment processing, and tax reporting?
This tool provides educational decision support only. Results are not legal, tax, actuarial, or insurance advice. Validate all outputs against current plan documents, applicable law, and qualified professional guidance. Scoring version 1.0 · Reference year 2026.
