Sens. Mark R. Warner (D-VA) and John Thune (R-SD) have crafted a measure 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 relief and employers with a tool to attract and retain talented employees.
Reportedly, 25 percent of Americans have student loans, and student debt reached $1.5 trillion in 2018. Student debt is a significant financial burden that not only influences the way the nation’s workforce saves and spends, but also has a stifling effect on the economy.
“As the first in my family to graduate from college, I wouldn’t have been able to afford my college tuition without the help of student loans,” Warner said. “Unfortunately, as the cost of higher education continues to skyrocket, so has the rate of Americans who turn to student loans to pay for college. Today too many Americans are saddled with tough-to-manage student loan debt, with no end in sight. That’s why I’ve teamed up with Sen. Thune to create an innovative, bipartisan approach to help ease the burden of student loans.”
Thune said the measure would give young career seekers additional tools to help overcome the burden of student loan debt.
“It’s no secret that as today’s college graduates look toward the next chapter in life, they often trade their cap and gown for debt and uncertainty,” Thune said. “This bipartisan legislation, which I view as a win-win for graduates and employers, is good policy and one that I hope garners strong support.”