Why Employers Should Offer Educational Assistance Programs

Employers looking to attract top talent and improve retention should consider offering educational assistance programs. These programs, while not new, have become more flexible—at least through December 31, 2025.

During this period, employers can use these funds to help employees pay off federal student loan debt. According to the U.S. Department of Education, the average borrower in 2024 holds about $37,850 in federal student loans. Companies can contribute directly to employees or their lenders. These payments, up to $5,250 per employee per year, are tax-free. Any amount beyond that will be taxed as wages.

For companies not already offering educational assistance, this is an ideal time to implement such a program. With the added benefit of student loan repayment, businesses can use this incentive to gain a competitive edge in today’s tight labor market.

Educational assistance is a valuable fringe benefit that can boost recruitment and retention by providing employees with financial relief. To learn more about adding this to your company’s benefits package, visit the IRS page on employer-offered educational assistance programs.

By offering this program, businesses can provide meaningful support while helping employees build a more stable financial future.

Tax Problems?

If you’re ready to take control of your tax situation, resolve IRS audits, and start saving, we encourage you to contact Quantum Tax Strategies at (877) 205-2565. Our tax consultants are standing by to provide you with the personalized guidance and support you need to achieve your financial objectives.