CARES Act opens new avenue for companies to offer 401(K)-like student loan benefits, startup Goodly CEO says

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CARES Act opens path for companies to offer tax-free student loan benefits, startup Goodly CEO says

Goodly, a San Francisco-based startup that supplies companies up with student loan benefits programs similar to retirement savings accounts, could also find itself benefiting from the massive coronavirus economic recovery measure passed by the federal government last month.

"It was considered a taxable benefit for the employer, and it could often be a blocker or a barrier to employers implementing the system," Poulin explained.according to the Federal Reserve Bank of St. Louis The CARES Act, the $2.2 trillion economic recovery act that President Donald Trump signed in late March, is offering business incentives to earmark money for student loan benefits through the end of 2020. Employers can reimburse employees up to $5,250 for student loan payments, contributions that will be free of tax.

 

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