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3 Replies Last post: Oct 30, 2008 12:50 AM by Lighthouse24

Student loan repayment program as a benefit?

Oct 28, 2008 9:36 AM

Click to view erpa17's profile Start-up erpa17 2 posts since
Oct 28, 2008
hello all
this is my first question as i did not find any other topics in other threads regarding what i am about to ask ( i have been lingering for a while).
i have formed a S-corp with a total of 1 emplyee. here is my question: has anyone formed a student loan repayment program? I have a meeting with my cpa next week, but i wanted to get some ideas with some options before i meet with him.

thank you so much
erpa17
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Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
1. Re: Student loan repayment program as a benefit? Oct 28, 2008 11:15 AM
These programs are widely used by federal agencies, school districts, and hospitals. Aside from law firms, I'm not personally aware of any small businesses that offer this benefit. I'm guessing that it is limited (in the small enterprise world) to professional/service companies that need to recruit or retain a specialized skill that is key to business unit's success and survival. I haven't seen this issue discussed here, either -- so I hope you'll share what you learn. Welcome to the community and good luck.
Click to view erpa17's profile Start-up erpa17 2 posts since
Oct 28, 2008
2. Re: Student loan repayment program as a benefit? Oct 30, 2008 12:31 AM
in response to: Lighthouse24
so far it is not looking to good since i am the sole owner/president/ and employee...it might be possible if someone else owned the business (wife?) but i am ot sure...all of my own research has lead me to believe that this may not be an option for me (even though i am in the medical field)...however, i still have a meeting with my cpa and he my know better...
thank you for your reply

erpa
Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
3. Re: Student loan repayment program as a benefit? Oct 30, 2008 9:43 AM
in response to: erpa17
So YOU are the employee you were talking about? You can verify this with your CPA, but I'm pretty sure that even if an employer pays off a student loan directly to the lender, the amount paid is still considered taxable income to the employee. So I'm not seeing how this would benefit you exactly . . . still interested in hearing if/how it does when you learn more, however.