DelBene, Meehan Introduce HELP for Students and Parents Act
The bipartisan bill makes college more affordable for middle-class families.
Reps. Patrick Meehan (R-Pa.) and Suzan DelBene (D-Wa.) this week introduced the Higher Education Loan Payments (HELP) for Students and Parents Act, bipartisan legislation that will make college more affordable by modernizing how the tax code treats employer contributions toward student loan repayment.
“The average American student graduates with more than $37,000 in student debt and for too many middle class students, a college degree is simply out of reach all together,” said Congressman Meehan. “Many employers offer benefits like student loan repayment programs and matching contributions to college savings plans. These benefits ease the burden of debt and help make a college degree more obtainable for students. But our tax code offers no incentive to offer them. This bill will change that. By incentivizing employers to offer these benefits to their employees, we can enable more students and families to access them. Ultimately it will help Americans graduate with less debt and get out from underneath their debt faster. I’m pleased to have the opportunity to work with Congresswoman DelBene on this effort to make college more affordable for American families.”
“The rising cost of higher education is forcing millions of middle-class students and families deep into debt as they take out higher loan amounts to pay for tuition, fees, textbooks and housing. They shouldn’t be hit by taxes as well,” DelBene said. “Every year in Washington state, 56 percent of graduates from four-year universities leave school with student debt, and on average those students owe more than $23,000 upon graduation. That’s why I’m honored to work across the aisle with Congressman Meehan on this commonsense, bipartisan solution that would help working families and students pay for college.”
"As a company that works with employers across the country to provide student loan assistance programs that help employees tackle student debt, Peanut Butter recognizes and applauds Representative Pat Meehan's HELP for Students and Parents Act as an important tool to align the interests of employers, citizens, and federal government in resolving America's student debt crisis," said David Aronson, CEO of Peanut Butter. Peanut Butter helps companies attract and retain talent by offering student loan assistance as an employee benefit. Experts in benefits administration, Peanut Butter's team and technology provide employees access to information and decision support tools to better manage their debt, and facilitate employer contributions toward employee student loans.
HELP for Students and Parents Act
While a number of employer benefits receive significant tax advantages in order to facilitate their adoption and use, there is no comparable treatment for employer contributions towards an employee’s student loan repayments. This disconnect between current law and the priorities of the modern workforce help explain why, at a time when young workers are clearly in need of student loan repayment assistance, only three percent of companies offer the benefit to employees.
The HELP for Students and Parents Act modernizes how the tax code treats employer contributions towards student loan repayment, supports young workers who want this benefit, and encourages employers to adapt their employee benefit offerings to meet the financial goals of today’s workers.