Overview
Through the American Rescue Plan Act, South Carolina school districts received a little over $2 billion in funding to assist educators during the pandemic. Those funds were designated for programs aimed at retaining and recruiting teachers. Districts were presented with several options for spending this money; one such option was to assist educators with their student loans.
Districts can pay school employees up to $5,250 a year towards their student loan payments. That income is non-taxable and available until at least 2026.
Many districts have not yet spent the money and have left it in the bank.
We're mobilizing members to encourage their district leaders to spend the money on loan repayment for educators.
How Can This Money Help Me?
If you are a public school employee with outstanding student debt and your district has ARP money left over, then they can use it to help you with student loan payments.
Under Rescue Plan guidelines, districts can provide you with up to $5,250 per year until January 1, 2026. This income is non-taxable.
Your degree does not have to be relevant to your current job to be eligible for loan payment assistance.
Does My District Have Funds Available?
The state of South Carolina has a funding tracker available below. The tracker was last updated August 23, 2023. Currently, about half of the funding has been spent.
How Does This Work?
Your employer can either pay you directly, pay your lender, or pay the student loan servicer that processes payments for your lender.
In order for the contributions to be tax-free, your employer must establish an educational assistance program to provide employees with funds to assist them as they pay off their student loans.
The student loans can be for education received before employment or education the employee is currently pursuing while employed. Both federal and private loans are eligible.
How Do I Get My District To Spend This Money?
Over the coming weeks we will provide specific advocacy tools for you to contact your district leadership and ask them to use ARP Funds for loan payment assistance. That information will be available on this webpage and in our Action Center
