Proposed Bill Would Help Employers Offer Student Loan Repayment Benefits
Lawmakers are, once again, fighting for a tax-exempt student loan assistance benefit. The legislation would permit employers to contribute up to $5,250 tax-free to their employees’ student loans. Senators John Thune, R-South Dakota, and Mark Warner, D-Virginia, have introduced the Employer Participation in Repayment Act, which would permit employers to contribute.
The bill would expand the Employer Education Assistance Program, which only provides assistance for workers who are seeking additional education, but does not benefit individuals who already have incurred student loan debt.
The legislation has also been introduced in the House of Representatives by Reps. Rodney Davis, R-Illinois, and Scott Peters, D-California, and has support from numerous educational organizations. For the past few years, California has been actively working on getting the bill passed. See California Assembly Bill AB2478.
The senators issued a press release noting that one in four Americans have student loans, and that these loans total $1.5 trillion in the U.S.
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