The Biden administration announced several student loan debt relief measures on August 24, 2022, including an extended loan repayment moratorium through December 31, 2022, and debt cancellation that will be available near the end of the year. Pell Grant recipients will receive $20,000 of student loan forgiveness. Other borrowers are eligible for $10,000 of student loan debt cancellation, if they earn $125,000 or less ($250,000 or less for married filers and heads of household). In light of these changes, employers may want to consider reassessing their existing education assistance program benefits.

The future relief measures the Biden administration proposed included a new income-driven repayment program and a restriction on unpaid interest. Under these proposals, borrowers who have paid loans for ten years and have remaining balances of $12,000 or less would be eligible for forgiveness at that time. Currently, borrowers are eligible for forgiveness only after twenty years of repayment. The proposal also would restrict interest accruals for borrowers who are making monthly payments, so that total loan amounts would actually be reduced by repayments. Borrowers earning under 225 percent of the federal poverty level (i.e., earning around the federal minimum wage) would be exempt from repayment and from accruing interest.

Accordingly, now is a good time for employers to consider reviewing any education assistance program benefits that are currently being offered, as well as...

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