Bright Horizons EdAssist Solution Approves CARES Act Student Loan Repayment Extension
NEWTON, Mass .– (COMMERCIAL THREAD) – Bright Horizons® EdAssist Solutions (NYSE: BFAM) today announced its support for the CARES Act student loan repayment provision, which Congress recently agreed to extend until 2025.
Under the new provision, employers can make tax-free contributions of up to $ 5,250 per year towards their employees’ education expenses, covering both tuition fees and student loan assistance. While the provision was originally scheduled to expire at the end of 2020, it has been extended until December 31, 2025.
Bright Horizons EdAssist Solutions partners with over 200 employers to deliver workforce training programs and began creating student loan repayment programs for employers in 2015. 1 in 10 employers offered a student loan benefit before the coronavirus pandemic, according to the Society for Human Resource Management, that number could reach 1 of 3 – a 300% increase – if the government allowed them to make payments tax free.
“This is great news as we have seen the profound impact that addressing student debt has had for our early adopters, ”said Patrick Donovan, Senior Vice President, Emerging Services at Bright Horizons. “Now that this law makes employer contributions tax exempt, we believe that student loan assistance will be seen as an ordinary employee benefit.
In 2019 alone, Bright Horizons EdAssist Solutions helped client employees:
Save nearly $ 1 billion in additional student loan debt with direct tuition payments
Save nearly $ 17 million on principal with student loan debt repayment
Save $ 10.6 million in interest
Cut 52,470 months from the life of their loans (on average 3 months per year).
“We have been providing student loan repayment benefits to our staff for a number of years through Bright Horizons, ”said Michelle Sanchez-Bickley, Director of Human Resources at Renown Health. “Now more than ever, it is critically important to provide staff with options to help reduce stress and financial hardship. We know that our employees give everything to our patients and our community and we want to offer them every opportunity to enjoy meaningful benefits to help them achieve their goals in life.
About Bright Horizons Family Solutions Inc.
Luminous horizons® is one of the world’s leading providers of high quality child care and early childhood education, supportive care and workplace education. For over 30 years, we’ve partnered with employers to support the workforce by providing services that help working families and employees thrive personally and professionally. We operate approximately 1,000 child care centers in the United States, United Kingdom, Netherlands and India and serve over 1,200 of the world’s largest organizations. Bright Horizons Child Care Centers, child and senior care support services and workforce training programs, including management of tuition programs, counseling in education and student loan repayment, help employees achieve success at every stage of their life and career. For more information, visit www.brighthorizons.com.