Thune, Warner, Malliotakis, Peters Reintroduce Legislation to Address Student Debt Crisis

WASHINGTON
— U.S. Sens. John Thune (R-S.D.) and Mark Warner (D-Va.), and U.S. Reps. Nicole Malliotakis (R-N.Y.) and Scott Peters (D-Calif.), today reintroduced the Employer Participation in Repayment Act, bipartisan
legislation
that would help Americans tackle their student loan debt by making permanent a provision that allows employers to contribute up to $5,250 tax-free to their employees’ student loans.
In 2020, Thune and Warner along with Peters negotiated the inclusion of a provision in the
CARES Act
that allowed these contributions temporarily. Later that year, as part of the government spending package, they secured an extension allowing this benefit until January 1, 2026. By making this tax benefit permanent, today’s legislation would provide employees with much-needed relief and employers with a unique and permanent tool to attract and retain talented employees.
“Incentivizing employers to help repay their employees’ student loans was a common-sense step Congress took to address the high levels of student debt that borrowers face,”
said Thune
. “This bill would permanently equip employers with this unique tool to help attract and retain talented employees while protecting American taxpayers from costly burdens. This is a win-win for graduates and their employers, and I hope it will once again garner strong, bipartisan support.”
“As the first in my family to graduate from college, I wouldn’t have been able to afford my tuition without the help of student loans,”
said Warner
. “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. By making employer student loan repayments tax-exempt, employers will have a tool to recruit and retain a talented workforce while also helping working Americans manage their financial future.”