REPS. DAVIS AND PETERS IN CHICAGO TRIBUNE: "EMPLOYERS SHOULD TRY TO ATTRACT WORKERS BY OFFERING STUDENT LOAN DEBT HELP"

Press Release

U.S. Representatives Rodney Davis (R-IL) and Scott Peters (D-CA) recently penned a guest column in the Chicago Tribune encouraging employers to consider tax benefits that incentivize employers to make student loan payments on behalf of their employees. Legislation creating this student loan benefit, the Employer Participation in Repayment Act, was first introduced by Reps. Davis and Peters several years ago and signed into law last year by President Trump. You can learn more about this benefit visiting rodneydavis.house.gov/studentloanbenefit.

From the Davis-Peters guest column titled, "Employers should try to attract workers by offering student loan debt help. The law is on their side.":

"…As we debate in Washington how best to tackle student debt and remedy our country's labor shortage, there is one solution already codified into law that can treat both problems.

"We introduced the bipartisan Employer Participation in Repayment Act in 2019 to create a unique public-private partnership that incentivizes employers to pay down their employees' student loans by making those loan payments tax-free.

"Our bill was included in the CARES Act last year and extended for a five-year period in legislation passed last December. Our proposal lowers payroll tax obligations for both employers and employees by allowing employers to treat student loan payments the same as tuition assistance programs that many already offer across the country.

"…Now, employers can offer up to $5,250 per year of tax-free student loan repayment to their employees, just like tuition assistance programs. To participate, the Internal Revenue Service requires employers to create a written educational assistance program plan for their employees, similar to the requirement for the tuition assistance benefit.

"…With the U.S. Department of Education restarting student loan payments on Jan. 31 after a pandemic-induced pause, now is the perfect time for employers to consider this benefit for their workforces. Employers will find this benefit a win-win to attract and retain workers, provide debt relief, and help our nation reduce our student debt crisis."

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