Journal Article

Sweeping Changes to Student Loans: What This Means for Borrowers and Employers

Martinez, Allison

2026

Overview

According to data from earlier this year, one in six American adults has federal student loan debt- with the federal student loan portfolio totaling more than $1.6 trillion dollars. For those attending a University of California law school, tuition for the 2025-2026 academic year for a California resident is approximately $60,000 (or more) per year. [Code $ 127(b)(3)} In general, this means no more than 5 percent of employer paid educational assistance amounts paid during the year can benefit shareholders or owners (or their spouses or dependents) if they own more than 5 percent of the employer's stock, capital, or profits interest. [/d.] {Id.} While amounts in the Accounts can grow on a tax-deferred basis, they are subject to tax upon withdrawal. Because the Accounts' funds cannot be withdrawn until a child turns 18, many view them as a mechanism to save for college.

• Publisher: Aspen Publishers, Inc
• Subject: Cost control / Education expenses / Employee benefits / Employers / Graduate students / Higher education / One Big Beautiful Bill Act 2025-US / Provisions / State laws / Stockholders / Student debt / Student loans / Tuition