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House Co-Sponsorship Memoranda
House of Representatives
Session of 2019 - 2020
Regular Session
MEMORANDUM
| Posted: | February 21, 2019 12:28 PM |
|---|---|
| From: | Representative Thomas P. Murt |
| To: | All House members |
| Subject: | Addressing Student Debt Crisis |
| For many college students in Pennsylvania, the mountainous amount of debt that they incur in order to finance their college education is overwhelming. Many college graduates are well into their thirties before they ever catch-up with their student loan obligations. For medical school, law school, and advanced degree graduates, it is even later. I will soon introduce legislation that will allow parents, grandparents, or family members, the flexibility of a one-time withdrawal of funds from a 401(k) plan that is penalty-free and tax-free as long as it is for the purpose of paying off government student loan debt or private student loan debt of a child, grandchild, or relative, as long as the withdrawal does not exceed 25% of the 401(k) balance. Most parents who are 59.5, can access their 401(k)s penalty free, but many parents are years away from 59.5 and the interest that some children are paying on student debt, makes it very hard for a recent college graduate to establish themselves financially. Please consider co-sponsoring this important legislation. |
Introduced as HB1306