Peanut Butter CEO David Aronson joined U.S. Reps. Rodney Davis (R-Ill.) and Scott Peters (D-Calif.) at a press conference to announce their bill, H.R. 795, the Employer Participation in Student Loan Assistance Act, to help address rising student debt. The proposed legislation engages private employers and encourages them to offer a tax-free benefit to put toward an employee’s student loan debt, similar to the existing tax benefit for tuition assistance.
Peanut Butter Founder and CEO David Aronson joins Reps. Davis and Peters to Introduce H.R. 795, the Employer Participation in Student Loan Assistance Act
“Seven in 10 college seniors last year graduated with student loan debt, which now represents the second highest form of consumer debt,” said Davis. “This debt is a drag on our economy because it prevents many young adults from contributing to our economy. Many are putting off buying a house, purchasing a car or saving for retirement. The Employer Participation in Student Loan Assistance Act encourages employers to be part of the solution by allowing them to offer a tax-free employee benefit that will help graduates pay down their student debt. Some companies are already offering this benefit because they see the advantage it gives them when recruiting and retaining younger employees but we want to encourage more to participate so we can help both struggling graduates and our economy.”
“Access to affordable higher education has made the American dream attainable for millions of Americans, and is central to our nation’s competitiveness and success,” said Peters. “I would not have been able to attend college without student loans and work study programs, but the rising burden of student loan debt has weighed down graduates and is a drag on our entire economy. Just as allowing employers to offer tax-free tuition assistance has enabled more Americans to advance their education, offering this same incentive for student loan payments will speed up the repayment process so that graduates can begin to make investments such as buying a home, starting a family or saving for retirement.”
Details of H.R. 795
Benefits to employees include:
- Will receive a tax-exempt benefit of up to $5,250 per year to pay on their already incurred student loan debt.
Benefits to employers include:
- Permits employers to assist employees who already have student loans to the same degree they can help employees with continued education.
- Helps companies recruit and retain young, educated talent.
- Employers can deduct the subsidy provided to employees.
“The $30k+ burden of student debt rests heavy on many college-educated Americans, just as the $1.2T+ federal student loan portfolio rests heavy on our nation,” said David Aronson, CEO of Peanut Butter. “Leading employers around the country are now partnered with Peanut Butter to provide student loan assistance programs that help employees tackle student debt. The Employer Participation in Student Loan Assistance Act will provide an important structure to align the interests of employers, citizens and federal government in resolving America’s student debt crisis.”
If you are interested in learning more about how you can offer student loan assistance at your company, contact Peanut Butter’s Client Solutions team today.