Federal Bill Aims to Incentivize Employers to Help with Student Loans
SIOUX FALLS, S.D. – This graduation season is also launching many undergrads into the working world.
Statistics show 70 percent of college students graduate with a significant amount of debt. The average student racks up roughly $37,000 in student loans by the time they graduate.
On Capitol Hill, Senator John Thune says he is working to help alleviate student loan debt. Thune is sponsoring the Employer Participation in Repayment Act.
The bill offers tax incentives to employers who help pay off their employees’ student debt.
“We think it will help reduce the amount of debt that we have in this country and a lot of people coming out of our colleges and universities and tech schools with debt that is going to take them a long time to pay back, we want to provide an incentive for their employers to help them do that,” said Thune.
If passed, the legislation would allow employers to contribute up to $5,250 tax-free to their employees’ student loans. The bill is currently in Senate and House committees.