SoFi At Work CARES
Navigating CARES
and the end of federal student loan relief.
The pause on federal student loan interest and payments expires on 12/31/22. We’ve created a guide to help organizations understand what this means for their employees and how to support them in the challenges ahead.
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What you need to know
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Federal student loan relief is expiring
This means that interest and monthly payments will return for millions of borrowers.
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Benefits won’t be extended again.
This is the extension of CARES student loan relief.
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Borrowers have options.
Refinancing can help borrowers get ahead of their loans while interest rates are low.
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SoFi can help.
Refinancing with SoFi can help borrowers lock in a lower rate and keep some of their federal benefits.
How SoFi at Work can help.
We can empower your employees and their financial lives. Here’s how.
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Refinancing Benefits
Employees can refi their federal and private student loans with SoFi by locking in a lower rate.
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Student Loan Support
Employees can get help from financial planners or our dedicated student loan support team.
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Resources and Tools
Our partners can access timeline information, in-depth guides, and interactive tools to take control of their debt.
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Exclusive Perks*
Empower your employees with rate discounts on loans, cash bonuses, and more.‡
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Read up on CARES
Here are a few additional resources on federal student loan relief and what it means for organizations and their employees.
Let’s work together
Want to learn more about SoFi at Work? Let’s talk.
Stand out with student loan benefits.
No two employees’ needs are the same, nor are any companies’. That’s why our suite of benefits covers every major life stage and can be customized to match your employees’ needs. From saving for a child’s education to planning for retirement, or saving for the unexpected in between, where there’s a plan, we have a solution-and the team to put it in place for you.
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FAQs
The new legislation modified educational assistance to include student loan payments by employers. Employers can now include loan payments along with other educational assistance that is subject to the $5,250 exclusion from employee’s income. Employers can deduct this amount, just like they were allowed to before—the only change is that loan payments can now be included. Tuition assistance and student loan payments should now be combined for purposes of calculating the $5,250 limit resulting in taxable income to the employee, the employer can deduct both the $5,250 excluded from wages and any excess that is included in wages.
The Consolidated Appropriations Act, 2021 extended the CARES treatment of payments of student loan principal and interest by an employer to either an employee or a lender is not taxable to the employee if paid through December 31, 2025. The maximum tax—free amount is $5,250 per employee [maximum total allowed under Sec. 127] per year.
No, not an addition. Employers can offer as much “education assistance” as they wish, but only up to $5,250 per year can be excluded from an employee’s taxable income. This $5,250 total includes student loan contributions and traditional tuition assistance.
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