U.S. Sen. Susan Collins (R-ME) last week cosponsored a bipartisan bill that would get America’s employers involved in helping their workers pay off student loan debt.
The Employer Participation in Repayment Act, S. 460, would permit employers to contribute up to $5,250 tax-free to their employees’ student loans, according to the congressional record.
“Education plays a vital role in opening the doors of opportunity to all Americans, but the rising cost of a college education threatens to close those doors to many families across the country,” Sen. Collins said. “This bipartisan bill would help alleviate the financial strain of student loans by encouraging more employers to provide student loan repayment benefits to their employees.”
Sen. Collins on Feb. 12 joined 17 other original cosponsors of S. 460, which include U.S. Sens. John Thune (R-SD), Shelley Moore Capito (R-WV), Pat Roberts (R-KS), John Hoeven (R-ND), Roy Blunt (R-MO), Todd Young (R-IN), Mike Rounds (R-SD), and Cory Gardner (R-CO).
The proposed legislation would update the existing Employer Education Assistance Program, which currently provides assistance only to workers who are seeking additional education, according to a summary provided by Sen. Collins’ office, and the program doesn’t extend to individuals who have already incurred student loan debt.
A summary of the bill provided by Sen. Collins noted that the measure is supported by numerous educational organizations, including the National Education Association, the American Federation of Teachers, the American Association of Community Colleges, and the National Association of Independent Colleges and Universities, among several others.
S. 460, which is sponsored by U.S. Sen. Mark Warner (D-VA), is the companion bill to the same-named H.R. 1043, introduced on Feb. 7 by lead original cosponsor U.S. Rep. Rodney Davis (R-IL) and sponsored by U.S. Rep. Scott Peters (D-CA). The U.S. House of Representatives bill as of today has 101 total cosponsors.
S. 460 has been referred for consideration to the U.S. Senate Finance Committee, while H.R. 1043 is being reviewed by the U.S. House Ways and Means Committee.