Image of the United States Capitol building.
As student loan debt continues to be a burden on millions of Americans, the Senate introduced the latest version of a bipartisan bill that would provide tax relief to employers helping their employees pay down their student debt in the form of monthly contributions.
The Employer Participation in Repayment Act, operating under oversight of the Internal Revenue Service, would allow employers to make up to $5,250 in tax-free contributions towards an employee's student loan debt.
While laws similar to this one have failed in the past, supporters are optimistic this effort can work. The fact that it is supported by lawmakers in both parties reflects the importance of the student loan issue, transcending party lines and generating cooperation (in this one case).
The bill would essentially function with similar benefits as some retirement plans, giving employees a full tax-free benefit with the added bonus of receiving student loan assistance. That assistance is desperately needed since 44 million Americans owe a combined $1.4 trillion in student loan debt—and many are willing to go to great lengths to get rid of that debt.
According to The Student Loan Report’s “Outrageous Student Loan Forgiveness Survey,” 70.46 percent of borrowers would give up Netflix forever if it meant no more student loans. 9.72 percent would live with the “cash me outside” girl for one year. 45.51 percent of borrowers would work on the construction of Trump’s border wall for one year. 22.75 percent would help their best friend dispose of a dead body—all to get rid of their student loan debt forever. This goes to show how tough student loan forgiveness is to qualify for.
Image Copyright © Kai Hendry