Americans have too many immediate expenses to pay to even consider long-term saving, the theory goes, one of which the outrageous saddles of student debt.
To offer relief, and encourage retirement plan participation, Senators John Thune, R-South Dakota, and Mark Warner, D-Virginia, this week introduced legislation to help.
The Employer Participation in Repayment Act would allow employers to contribute up to $5,250 tax-free to their employees’ student loans—providing employees with much-needed relief and employers with a unique tool to attract and retain talented employees.
“Today’s economy is strong, and I believe we should keep our foot on the gas by passing common-sense bills like the one Sen. Warner and I have proposed that would give young career seekers additional tools to help overcome the burden of student loan debt and empower employers to attract future talent,” Thune said in a statement. “It’s no secret that as today’s college graduates look toward the next chapter in life, they often trade their cap and gown for debt and uncertainty. This bipartisan legislation, which I view as a win-win for graduates and employers, is good policy and one that I hope garners strong support.”
Major problem
According to reports, one in four Americans have student loans, and student debt in the U.S. reached $1.5 trillion in 2018.
Student debt is a “significant financial burden that not only influences the way our workforce saves and spends, but also has a stifling effect on the economy,” according to the senators.
The Warner-Thune bill would update an existing federal program so that it works better for employees living with the reality of burdensome student loan debt.
The Employer Education Assistance Program, as currently written, only provides assistance for workers who are seeking additional education. It does not extend to individuals who have already incurred student loan debt during their undergraduate or graduate studies.
Extensive bipartisan support
Additional cosponsors of the bill include:
- S. Sens. Richard Blumenthal, D-Connecticut
- Roy Blunt, R-Missouri
- Shelley Moore Capito, R-West Virginia
- Susan Collins, R-Maine
- Cory Gardner, R-Colorado
- Maggie Hassan, D-New Hampshire
- John Hoeven, R-North Dakota
- Doug Jones, D-Alabama,
- Angus King, I-Maine
- Ed Markey, D-Massachusetts
- Chris Murphy, D-Connecticut
- Pat Roberts, R-Kansas
- Mike Rounds, R-South Dakota
- Jacky Rosen, D-Nevada
- Kyrsten Sinema, D-Arizona
- Jon Tester, D-Montana
- Todd Young, R-Indiana
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 education.