|Posted:||October 1, 2019 01:53 PM|
|From:||Representative Morgan Cephas|
|To:||All House members|
|Subject:||Tax Credits for Student Loan Repayment Programs|
|It is no secret that student loan debt has become a major hardship for youth and young adults in America. With more than 44 million borrowers who collectively owe $1.5 trillion, student loan debt is now the second highest consumer debt category in the U.S. Pennsylvania is one of the worst states for student debt: as of 2018, 1.7 million borrowers owe $53.7 billion in student loans. The increasing load of student loan debt on college graduates can have negative effects on the economy due to many borrowers delaying buying cars, buying homes, and starting businesses.
To address this issue, some employers have started offering programs that help employees pay off their student loans. Employers say offering these program helps recruit employees and, most importantly, retain them; these benefits also help to alleviate the burden of student loans. However, businesses that offer to pay off student loans, and the employees they are paying for, must both pay income taxes on the payments made. As such, not enough businesses are keen to offer these kinds of programs because of the taxes placed on the payments.
To provide tax relief for employers who offer student loan repayment programs to their employees, and to further help liberate our youth from the stress of student loan debt, I am introducing legislation that would provide tax exemptions for employers who offer student loan repayment programs for their employees.
Please join me in co-sponsoring legislation that will greatly benefit businesses, working Pennsylvanians, and the future of our nation.
Introduced as HB2268