Rounds Joins Thune, Warner to Introduce Legislation to Address Student Debt Crisis
Legislation would allow employers to offer tax-free student loan assistance to help their employees pay off student loan debt
WASHINGTON – U.S. Sen. Mike Rounds (R-S.D.) joined his colleagues in introducing legislation to help Americans tackle their student loan debt. Led by Sens. John Thune (R-S.D.) and Mark R. Warner (D-Va.), the Employer Participation in Repayment Act would allow employers to contribute up to $5,250 tax-free to their employees’ student loans – providing employees with much-needed relief and employers with a unique tool to attract and retain talented employees.
“With the cost of education skyrocketing, student loan debt is at an all-time high,” said Rounds. “Our legislation would open up additional tools to help both students dealing with education loans and employers seeking to attract new hires. I’m pleased to join Sens. Thune and Warner in this effort to ease the financial burden for families seeking a college education.”
According to reports, one in four Americans have student loans, and student debt in the U.S. reached $1.5 trillion in 2018. Student debt is a significant financial burden that not only influences the way our workforce saves and spends, but also has a stifling effect on the economy. The Employer Participation in Repayment Act would update an existing federal program so that it works better for employees living with the reality of burdensome student loan debt. The Employer Education Assistance Program, as currently written, only provides assistance for workers who are seeking additional education. It does not extend to individuals who have already incurred student loan debt during their undergraduate or graduate studies.
Additional cosponsors of the bill include U.S. Sens. Angus King (I-Maine), Shelley Moore Capito (R-W.Va.), Ed Markey (D-Mass.), Pat Roberts (R-Kan.), Chris Murphy (D-Conn.), John Hoeven (R-N.D.), Doug Jones (D-Ala.), Richard Blumenthal (D-Conn.), Susan Collins (R-Maine), Jon Tester (D-Mont.), Roy Blunt (R-Mo.), Maggie Hassan (D-N.H.), Todd Young (R-Ind.), Jacky Rosen (D-Nev.), Cory Gardner (R-Colo.) and Kyrsten Sinema (D-N.M.).
The legislation has also been introduced in the House of Representatives by Reps. Scott Peters and (D-Calif.) and Rodney Davis (R-Ill.) and has support from numerous educational organizations.
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