Section 127 Education Assistance Plan & Student Loan Relief Plan

$395.00

Plan documents prepared for your church

SECTION 127STUDENT LOAN RELIEFFOR CHURCHES

Help employees with tuition, books and fees, and pay toward their student loans, tax-free.

Up to $5,250 a year per employee, tax-free
Covers tuition, books, supplies and fees
Student loan repayment is now a permanent part of the law
The church chooses which employee groups are eligible

TAX$

Per employee, per yearEducational assistance and student loan payments together, up to $5,250 a year, are tax-free to the employee.

Need help choosing the right solution?For more than 45 years, we’ve helped clergy and religious organizations with tax, payroll, bookkeeping and HR. Connect with an advisor for guidance tailored to your needs.

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Options

Purchaser Name(First/Last) : *

Purchaser Address/City/State/Zip : *

Purchaser Phone : *

Purchaser E-mail : *

Employer : *

Employer Address/City/State/Zip : *

Document Signer(First/Last Name) : *

Employer Phone :

Federal ID# (Must be nine digits XX-XXXXXXX, this is not your SSN) : *

State of Incorporation : *

Number of Employees : *

Effective Date: (enter first date of pay period when benefit will begin) *

Effective Date: (enter first date of pay period when benefit will begin) :

Effective Date *

Effective Date :

Employees are eligible the first day of the month coinciding with or next following ____ consecutive days of employment: *

First Day of Employment :

First Day Following ____ days of Employment :

First Day of the Month Next Following ____ days of Employment :

Other (Indicate below) :

Number of Days : *

Other : *

Notes Section : *

Description

Description

How it works

From order to finished plan document.

Complete the formFill out the form above to order the plan.

Schedule an appointmentSchedule an appointment to review your information. Payment for the plan is due at this step.

Receive your plan documentA benefit plan specialist reviews your plan for completeness, then we prepare your plan document.

How the plan works

The church sets the rules within IRS guidelines.

You choose who’s eligible

Offer it to one group and not another, for example full-time vs. part-time, or after a set length of employment.

What it can cover

Tuition, books, supplies, fees and similar expenses, plus payments toward employee student loans.

What it can’t cover

Travel, lodging, meals, items the employee keeps after the course, and courses on sports, games or hobbies.

A written plan is required

The law requires a separate written plan. The package includes the plan document, SPD, and election and claim forms.

Common questions

About the plan and your order.

Is student loan repayment still allowed?

Yes. It began as a temporary CARES Act provision and was made permanent by the 2025 tax law. The $5,250 limit will be adjusted for inflation after 2026.

We already have a Section 127 plan. Do we need a new one?

If your plan document doesn’t include student loan repayment, it needs to be updated before you can offer it.

Can I return it?

See the Refund & Return Policy tab above.

I’d rather have someone help me.

Our team works with churches and clergy every day. Email clientservices@clergyfinancial.com or call (888) 421-0101.

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