To Pay or Not to Pay: Student Loans and the CARES ActGullett, Nell S.Haddad, Mahmoud M.Hatch, Laura G.Journal of Financial Planning
PPP loans can be as large as 250% of a business’s average monthly payroll costs over the last 12 months, not to exceed $10 million; salaries over $100,000 are not counted as payroll costs. Student loans Exclusion for certain employer payments of student loans Adds to the exclusion from...
As part of the CARES Act, employers are able to provide tax-free student loan repayment benefits to employees until January 1, 2021. Employers may contribute up to $5,250 annually toward an employee’s student loans tax-free to the employees. In addition to student loan repayment assistance,...
As with student loans, though, the CARES Act creates a large group of have-nots. The coronavirus relief is only for borrowers with loans backed by Fannie Mae and Freddie Mac, the federally controlled mortgage giants. Many loans made by private lenders are backed by Fannie and Freddie. (To ...
CARES Act: 5 areas sponsors should focus on to help retirement plan participants Linde Murphy | June 05, 2020 By acting quickly and documenting changes, benefit executives can help employees and keep retirement plans in compliance. Student debt repayment and the CARES Act: What to know ...
The Interim Rule clarifies that the PPP loans, to the extent not forgiven, will have: A 2-year term (decreased from the maximum maturity of 10 years under the Act), An interest rate of 1% (increased from prior Treasury guidance that set the interest rate at 0.5%), ...
Employee Student Loans Under the CARES Act, an employer is allowed in 2020 to pay up to $5,250 of an employee’s student loan without the employee having to recognize income for the payment. Because current law allows an employer to pay up to $5,250 of an employee’s qualified education...
Allows the Secretary of Education to grant a deferment to an institution that received a loan under Part D of Title III of the Higher Education Act. Payments on student loans held by the Department of Education are suspended for 6 months, and the Secretary of Education shall suspend all invol...
The CARES Act has several provisions that will help student loan borrowers: For students with outstanding loans through Direct Loans and FFEL loans, a key provision is the ability to suspend payment until Sept. 30, 2020. Moreover, interest will not accrue during this suspension. ...
• The CARES Act also increases the limitation on deductions for contributions of food inventory from 15% to 25% for both noncorporate and corporate taxpayers. d. Exclusion for Certain Employer Payments of Student Loans • The Act enables an employer to make payments on an employ...