Graham Holds Student Roundtable; Announces Loan Assistance Bill

Press Release

Today Representative Gwen Graham held a roundtable with local students from Florida State University and Florida A&M University to discuss college affordability and student loans. During the roundtable, Rep. Graham announced she would be introducing The Employer Participation in Student Loan Assistance Act to enable employers to help pay their employees student loans.

"Too many students are receiving a great education but graduating with a burden of debt that prevents them from buying a home, saving for retirement or pursuing their preferred career," Rep. Graham said. "The Student Loan Assistance Act will incentivize businesses to help their employees pay off student loans. This legislation will help graduates become debt free, provides a tax cut to businesses, and will give a boost to our economy."

Today's average student graduates with nearly $30,000 in student debt and school loans are now the second highest form of consumer debt. Current law allows for employers to pay for continuing education, up to $5,250 per year, with those expenses not counting as income, meaning employees don't have to pay taxes on them. But, current law does not allow for an employer to pay off past education expenses like student loans. For example, if an employer paid off $1,000 in student loans on a employee's behalf, the IRS would look at that payment as income, and the employee would have to pay income taxes on it.

The Employer Participation in Student Loan Assistance Act would allow employers to repay an employee's existing student loan debt, up to $5,250/year, without the employee having to pay income taxes on that benefit. This is a win-win for employees and employers and could be a good recruitment tool to help employers recruit and retain young talent and help employees pay off their loans.

"Democrats and Republicans agree we need to address this issue, and the Student Loan Assistance Act is simple bipartisan legislation that will make a big difference in helping students pay off their loans," Rep. Graham said. The legislation is co-sponsored by Rep. Rodney Davis (R-IL)

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