Exclusion for Certain Employer Payments of Student Loans

Section 2206 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, expands the definition of educational assistance described in section 2 of Pub. 15-B to include certain employer payments of student loans paid after March 27, 2020, and before January 1, 2021. The exclusion applies to the payment by an employer, whether paid to the employee or to a lender, of principal or interest on any qualified education loan incurred by the employee for the education of the employee. Qualified education loans are defined in chapter 4 of Pub. 970. For more information about the exclusion of education assistance payments, see Educational Assistance in section 2 of Pub. 15-B.