WASHINGTON, D.C. – U.S. Senator Shelley Moore Capito (R-W.Va.) joined Senators Mark R. Warner (D-Va.) and John Thune (R-S.D.) to introduce legislation to help Americans tackle their student loan debt. 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 workers.
 
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 it also has a stifling effect on the economy. This legislation 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 currently 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 co-sponsors of the bill include Senators Angus King (I-Maine), Ed Markey (D-Mass.), Pat Roberts (R-Kan.), Chris Murphy (D-Conn.), John Hoeven (R-N.D.), Doug Jones (D-Ala.), Mike Rounds (R-S.D.), 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 Representatives Scott Peters (D-Calif.) and Rodney Davis (R-Ill.) and has support from numerous educational organizations.
 
“Too many individuals and families are being hindered by the financial burden of their post-secondary education. Student borrowers deserve access to a broad range of repayment options and loan forgiveness programs that address their variety of needs,” said Marc Egan, director of Government Relations for the National Education Association (NEA). “The NEA is proud to support Congressmen Scott Peters, Rodney Davis, Senators Mark Warner, and John Thune in creating new pathways for individuals to repay their student loans to make college more affordable and accessible for all.”
 
“The National Association of Independent Colleges and Universities fully supports The Employer Participation in Student Loan Assistance Act of 2019 and Reps. Peters and Davis’s efforts to expand IRC Sec. 127 to allow employers to offer both tuition and loan repayment assistance to their employees. Incentives like Sec. 127 encourage employers to invest in the education and training of employees at all levels, which ultimately benefits society and the economy. Expanding this benefit to allow employees to also use this tax-free assistance for student loan repayment helps the employees at two vital stages of financing their education. Improving this benefit will encourage more employer and employee participation, and result in a more educated and skilled workforce across the U.S,” said Dr. David L. Warren, president of the National Association of Independent Colleges and Universities (NAICU).
 
“The National Association of College and University Business Officers (NACUBO) commends Sen. Mark Warner and Rep. Scott Peters for introducing the Employer Participation in Repayment Act. The benefits currently offered by Section 127 of the tax code are an important tool for employers to attract the best possible employees and build a skilled workforce. While Section 127 is currently a valuable tool in supporting U.S. competitiveness it could, upon passage of the Employer Participation in Repayment Act, become the benefit of choice for tuition assistance and loan repayments among employers. Expansion of Section 127 would benefit employers, employees, students, and families, and help both institutions of higher learning and the U.S. workforce retain a top spot on the global stage,” said Susan Whealler Johnston, PhD, president and CEO of the National Association of College and University Business Officers (NACUBO).
 
“The enhanced ability for employers to contribute to student loan repayment represents an important opportunity to reduce student debt levels. We commend Senator Warner and Representative Peters for looking into this issue, as it may assist many community college students who borrow to pay for the cost of attendance of postsecondary education,” said J. Noah Brown, president and CEO of the Association of Community College Trustees.
 
“Students shouldn't be forced to look toward a future of being stuck in debt, especially when we have so much to offer the workforce and the world. As the cost of a college education continues to rise, it is increasingly vital that students have access to programs and resources to assist in loan repayment and forgiveness. The Association of Big Ten Students supports the efforts of Congressmen Rodney Davis and Scott Peters and Senators John Thune and Mark Warner in making a debt-free life more accessible for all and encourages the implementation of programs to reduce student loan debt across the country,” said Sarah Henry, director of Legislative Affairs for The Association of Big Ten Students.
 
“In today’s competitive job market, leading-edge benefits are the most powerful tool employers can wield to attract and retain talented workers. At SHRM, we advocate for efforts that create better workplaces and a better world. We strongly support The Employer Participation in Repayment Act, and I applaud Representatives Peters and Davis, and Senators Warner and Thune for their bold leadership on this critical issue. Expanding employer education assistance helps address the skills gap, which is holding back both workers and employers. When employers are able to help workers pay off student debt, more people will have confidence to pursue higher education and be better prepared to fill high-skilled fields,” said Johnny C. Taylor, Jr., SHRM-SCP, president and chief executive officer of the Society for Human Resource Management (SHRM).
 
Full text of the legislation can be found here. A summary of the legislation can be found here.


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