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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | March 1, 2024 10:43 AM |
|---|---|
| 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 across this country. With more than 43 million borrowers who collectively owe $1.77 trillion, student loan debt is the second highest consumer debt category in the U.S behind mortgages. Pennsylvania is one of the worst states for student debt: as of February of 2024, 1.8 million borrowers owe an average of $35,000 in student loans with 7.2% being in delinquency. To address this issue, some employers have started offering programs that help employees pay off their student loans. These programs help recruit and retain employees and 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 a result, too few businesses offer these repayment programs due to 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 reduce student loan debt, I am re-introducing legislation that would provide tax exemptions for employers who offer student loan repayment programs for their employees. This legislation would benefit businesses, working Pennsylvanians, and the future of our nation. Please join me in co-sponsoring this legislation. |