187- How to Get Your Employer to Pay $5,250 Towards Your Student Loans Before the End of 2020- Bonus/Emergency Episode

Journey To Launch

Jamila Souffrant

Business, Investing

4.9 • 1.7K Ratings

🗓️ 4 December 2020

⏱️ 30 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Did you know that your employer could pay off $5,250 of your student loans this year (2020)?! The payments wouldn't be taxable to you as the employee and your employer would get a tax break on the payment. But your employer would have to make the payment by December 31, 2020. This was a new provision made in the Cares Act back in March 2020 that many people didn't know about.

I found this out thanks to a tweet from episode 151 guest Lynette Khlafani Cox and when I shared this with my audience on my Instagram account @journeytolaunch, the comments went crazy with questions and comments. I had so many questions about it that I just had to invite Lynnette back on the podcast for an emergency episode to help answer some of your most asked questions on the subject.

We cover the following questions (and more):

What's the best way to ask your employer about this?
What's in it for the employer?
Does this apply to govt employees or non-profit employees?
What if you are your own employer, is there a loophole that entrepreneurs can use for themselves?
Do prior student loans qualify that you got years ago or for a degree not completed?
Can employers add additional stipulations like you must continue working there for X amount of time
Does this apply to part-time employees?
What are the chances that this will be extended into 2021?

Take a listen to this episode and share it with someone who could benefit from it. Remember you have until the end of 2020 for your employer to make the payment.

Other related blog posts/links mentioned in this episode:

Lynnette's blog post on the subject
Click here to get the HR email template you can send to your HR department
More COVID resource articles from Lynnette here
Listen to Lynnette's first appearance on the podcast where she talked about the CARE's act & Economic Relief package here
If you missed enrollment join the waitlist for my FI course.
Check out the other tools that help me with my finances and business here.
Check out the Journey To Launch Podcast index here which categorizes all of the Journey To Launch podcast episodes by subject. Now you can binge on your favorite topics or type of episode.
Join The Weekly Newsletter List
Leave me a voicemail– Leave me a question on the Journey To Launch voicemail and have it answered on the podcast!
Watch me on News12 Watch my latest segments on News12
YNAB – Start managing your money and budgeting so that you can reach your financial dreams. Sign up for a free 34 days trial of YNAB, my go-to budgeting app by using my referral link.

Connect with Lynnette:

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Transcript

Click on a timestamp to play from that location

0:00.0	You're listening to the Journey to Launch Podcast, a bonus slash emergency
0:06.3	episode about how you can get your employer to possibly pay 5,250
0:11.5	towards your student loans before the end of the year.
0:15.0	T-minous 10 seconds.
0:18.0	Welcome to the Journey to Launch Podcast with your host,
0:21.0	Jemila Sufrant, as a money expert who walks her talk.
0:25.0	She helps brave journeys like you, get out of debt, save, invest, and build real well.
0:32.0	Join her on the journey to launch to financial freedom in five, so you can try to implement this. Now I want to give
0:54.2	you some background on what's going on. So Lynette Kofani Cox was on
0:58.3	episode 151 of the podcast originally where she talked about the CARES Act. She read the entire
1:03.8	bill and broke it down for us on that episode about all the things we need to know
1:07.6	to help us financially in the CARES Act. Now recently Lynette posted on her Twitter something that a lot of people did not know.
1:16.0	She posted that if you are an employee with student loans, which is most people,
1:21.0	then your employer can actually pay up to $5,250 towards your student loan
1:27.2	until the end of the year, December 31st, 2020, and the payments are not taxable to you and your employer gets a tax break.
1:35.0	Now there are some stipulations and things around it but that's something a lot of people did not know.
1:40.0	I didn't know this and so when she tweeted this it basically went viral I also shared
1:45.3	it on my Instagram and that post I shared on my Instagram you know the comments the
1:50.0	likes the shares it was going crazy because people did not know this was possible for them.
1:55.5	And of course, there were a lot of questions, you know, am I eligible for this?
2:00.2	You know, how do I approach my employer?
2:01.9	How do I know that my employer will participate all the things and so I
	...

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