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.
Jeanette W. Weldon, CHESLA Executive Director stated “We are proud to continue our track record of providing innovative products and programs to help Connecticut students, families and recent graduates finance the cost of higher education. We believe this program will provide Connecticut employers with a significant recruitment advantage while reducing employee financial stress, especially during these unprecedented times.”
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.
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