Under the current tax laws, employer student loan repayment is taxable. Like your paycheck, it’s counted as income and subject to income tax, meaning there could be tax consequences of an employer paying student loan debt.
Does this mean that accepting student loan help isn’t worth it? Not necessarily. Offsetting the tax burden may be possible with smart student loan decisions, and some proposed congressional legislation may eventually allow companies to contribute tax-free to help employees repay their student loans.