2026 Employee Benefits Market Outlook 22 Innovative Strategies for Addressing Student Loan Debt Education is widely recognized as a pathway for higher income and greater financial well-being. However, for a significant portion of the workforce, this path has resulted in mounting student loan debt. According to the Federal Reserves most recent economic well-being survey, 30% of all adults representing more than 4 in 10 people who pursued education beyond high schoolreported that they took out student loans for their education. As employees increasingly seek support from their employers to manage this burden, student loan assis- tance benefits have become a powerful tool for companies looking to attract and retain qualified workers and secure a competitive advantage in the labor market. Recent legislation has strengthened and expanded two key options employers can offer heading into 2026: educational assistance programs and qualified student loan match programs. An educational assis- tance program is a separate written plan that provides educational assistance to employees. Among other requirements, these programs must be in writing and cannot discriminate in favor of highly compensated employees. While educational assistance programs have been available for many years to pay expenses such as books, equipment, supplies, fees and tuition, the option to use them to pay for student loans was made avail- able in 2020 and was set to expire on Dec. 31, 2025. However, the OBBBA permanently extends this student loan provision. As a result, employers may continue to use educational assistance programs to pay prin- cipal and interest on an employees qualified education loans. Payments made directly to the lender, as well as those made to the employee, may qualify. Under current law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year, and assistance provided above this level is typically taxable as wages. However, effective for tax- able years beginning after 2026, the OBBBA provides for annual inflation adjustments to the $5,250 limit.