Sens. Susan Collins (R-ME) and Angus King (I-ME) recently composed legislation designed to aid Americans in addressing student loan debt.
The Employer Participation in Repayment Act would enable employers to contribute up to $5,250 tax-free to their employees’ student loans – providing employees with much-needed relief and employers with a tool to attract and retain talented employees.
Twenty-five percent of Americans have student loans, with student debt reaching $1.5 trillion in 2018.
“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,” 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.”
The lawmakers said student debt is a significant financial burden influencing the way the American workforce saves and spends, carrying the potential to stifle the entire economy.
“Young people seeking higher education should be able to follow their dreams after graduation, but today the vast majority are shouldered with excessive and seemingly insurmountable debt,” King said. “A diploma should not be a certificate of anxiety, but one of hope for the future. That’s why we must look for innovative new ways to ease the burden of student loans and help the next generation join the workforce and succeed.”