Legislation introduced on Thursday by U.S. Rep. Elise Stefanik (R-NY) would enable employers to make tax-free contributions to their employees’ student loans.
The Helping Employers Lessen Payments for Students (HELPS) Act, H.R. 5415, would enable employers to make tax-free contributions to employee student loan payments that resemble employer contributions to 401k retirement accounts.
“Overwhelming student loan payments are holding millions back from buying homes, starting families and saving for retirement,” Stefanik, the chairwoman of the House Republican Policy Committee’s Millennial Task Force and a member of the House Education and Workforce Committee, said. “My bill would provide graduates and our next generation workforce with a powerful tool to pay off student loans faster while starting their careers.”
Under the bill, the annual maximum employer contribution would be capped at $10,000 per year.
“Higher education is a key investment in our nation’s workforce development and stimulating new economic growth opportunities,” Tony Collins, the president of Clarkson University in Potsdam, New York, said. “Rep. Stefanik’s legislation is fully aligned to the needs of our Clarkson students and corporate partners alike. This legislation is the kind of responsible change needed to have a positive impact on our economy.”
The HELPS Act would amend the Internal Revenue Code of 1986 so that employers could make tax-free payments toward qualified student loans and interest payments of their employees.