Perfect - that was what I was missing. Thanks. But wouldn't that impact a S-corp as well?

Section 127(c)(2) defines an employee as anyone qualifying under Section 401(c)(1). Section 401(c)(1) says: "The term “employee” includes, for any taxable year,...

How about someone that is self-employed (either LLC disregarded entity or not) and files a Schedule C? Can they use the provision to pay student loans and reduc...