The Connecticut Higher Education Supplemental Loan Authority (CHESLA) has announced its Employer Student Loan Repayment Program. The program is offered jointly by CHESLA and its Rhode Island counterpart, the Rhode Island Student Loan Authority (RISLA).
The relatively new program is open to all employers and offers flexibility and customization to help employers meet recruiting and retention goals. The program also includes a customized communication plan to explain the benefits and program details to employees.
The federal government is providing incentives for employers to offer student loan repayment programs for employees. These benefits include:
- Employers can make tax-free payments of up to a maximum of $5,250 per employee;
- Both federal student loans and private student loans are eligible;
- Payments for principal or interest on a “qualified education loan”;
- Employers and employees save on federal payroll taxes on qualifying payments, and
- Employees save on federal income taxes.
Under the program, employers who paydown CHESLA Refi CT loans on behalf of employees may also be eligible for a State of Connecticut tax credit beginning 01-01-22.
The Employer Student Loan Repayment Program will provide new tools to participating employers and employees including loan repayment counseling and an online dashboard. The program’s online portal will also manage and track payments to loan servicers and send monthly status reports to employees.
According to a recent survey, 86% of employees would commit to a company for 5 years if the employer helped pay back their student loans. Additionally, 6 out of 10 adults with student loan debt would consider switching employers to receive help in paying off debt.
For additional information on the Employer Student Loan Repayment Program, please contact Josh Hurlock, CHESLA’s Assistant Director at 860-761-8482 or jhurlock@chesla.org.