Frequently Asked Questions About Educational Assistance Programs

This fact sheet provides answers to frequently asked questions (FAQs) related to educational assistance programs under section 127 of the Internal Revenue Code (Code) (a section 127 educational assistance program). Read the full article from the IRS here.

1. What is an educational assistance program?
2. What are educational assistance benefits?
3. What is the total amount that an employee can exclude from gross income under section 127 of the Code per year?
4. What is a qualified education loan?
5. How can payments of qualified education loans be made?
6. Are employer payments of qualified education loans for spouses and dependents excluded from gross income under section 127 of the Code?
7. Can student debt be reimbursed under a section 127 educational assistance program?
8. Can self-employed individuals, shareholders, and owners receive educational assistance under a section 127 educational assistance program?
9. Are there other exclusions from gross income for educational assistance?

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