U.S. Reps. Rodney Davis (R-IL) and Gwen Graham (D-FL) late last week introduced the Employer Participation in Student Loan Assistance Act, which aims to provide a new tool to help employers recruit and retain employees by allowing them to help employees repay student loans with pre-tax dollars.
Currently, the Employer Education Assistance Program lets employers help employees finance continuing
education, but does not allow relief for individuals who already carry student-loan debt.
“Seven in ten college seniors last year graduated with student-loan debt, which now represents the second-highest form of consumer debt,” Davis said. “The Employer Participation in Student Loan Assistance Act encourages employers to be part of the solution by allowing them to offer an employee benefit that will help graduates pay down their student debt. With outstanding student-loan debt totaling more than $1 trillion, we must find ways to engage the private sector and help graduates manage their debt.”
Graham said college graduates’ high debt loads prevent them from purchasing a home, saving for retirement or pursuing a preferred career.
“Democrats and Republicans agree we need to address this issue, and the Employer Participation in Student Loan Assistance Act is common-sense, bipartisan legislation that will make a big difference in helping students pay off their loans,” Graham said.