@Nancy Qui Also, the Corporation paying the student loans regardless of whether they're treated as compensation or loans would mean the interest portion paid on the student loan would not be deductible by either you or the corporation. If treated as compensation the interest portion of the student loan payment would be included. As loans, If the interest rate is below market rate you and the corporation would be subject to the imputed interest rules of IRC 7872. This means you would have interest income and the corporation may or may not be entitled to the deduction for the interest.
