To Our Valued Clients,
This communication serves to inform you of a significant development that further enhances the value of the student loan repayment benefit you are already providing: the recent passage of the One Big Beautiful Bill (OBBB). This legislation has made employer contributions to student loans a permanent tax-free benefit under Section 127 of the Internal Revenue Code.
Your organization’s decision to offer student loan repayment assistance, through your partnership with Peanut Butter, demonstrates a commitment to strategically addressing the evolving needs of your talented workforce. This benefit has positioned you as a leader in:
- Enhanced Talent Acquisition: By offering this sought-after support, you have gained a distinct advantage in attracting highly qualified, college-educated professionals. The permanence of this tax-free status reinforces this competitive edge.
- Improved Employee Retention: Your investment in the financial well-being of your employees has fostered stronger loyalty and contributed to lower turnover rates. The long-term certainty provided by the OBBB further strengthens this positive outcome.
- Greater Workforce Engagement: By addressing a significant financial concern, you have empowered your employees to focus more fully on their contributions to your organization. This permanent tax-free framework underscores the sustained impact of your program.
Continued Success: No Action Required for Your Current Program
We want to assure you that no modifications are necessary to your existing student loan repayment program with Peanut Butter as a result of the OBBB’s passage. Your current structure is fully aligned to deliver this valuable benefit to your employees seamlessly. While many of you are already offering student loan repayment on a tax-free basis, we also recognize that some employers choose to offer it on a taxable basis for various strategic reasons, and that approach continues to provide significant value to both employers and employees. For those of you offering a tax-free plan, the OBBB provides welcome permanent clarity.
Recognizing Your Strategic Foresight:
This legislative update serves as a clear indicator of the strategic value your organization recognized early on by offering student loan repayment. You have proactively positioned your company to attract, retain, and engage top talent in a meaningful way. This development provides an opportune moment to underscore the impact of your strategic benefits initiatives within your organization.
Thank you for your continued confidence in Peanut Butter. Your early adoption of this impactful benefit demonstrates true leadership, and we are pleased to support your ongoing success.