Interest in student-debt relief grows as organizations receive CARES Act incentives

Student debt is an increasingly front-burner priority in the employee-benefits realm, with a staggering sum of roughly $1.7 trillion in student-loans outstanding and 70% of college graduates carrying debt that averages of $40,000.

It typically takes decades to pay off student debt. So while young people are looking to buy homes and start families, they’re carrying a significant financial burden on their shoulders. Employers have seen high levels of depression and anxiety among employees with student-loan debt, making this a financial and a wellness issue.

Last year’s CARES Act made an effort to address this situation, offering tax incentives to organizations that offered certain loan-repayment benefits to employees. The Consolidated Appropriations Act of 2021, passed at the end of the year, extended the tax advantages through 2025.