Congressman Bob Dold wants your boss to help pay off your student loans.
The Northern Illinois Republican plans to run a bill that would give tax breaks to employers who pay down some of their employees’ college loan debt. Employees would not have to count that money as income. He says it would encourage employers to offer lower student loan payments as an insurance-like perk.
“This is about empowering students to make choices on the school that they want to go to,” Dold said. “It’s about making it accessible to them by trying to incentivize employers to help pay down debts from student loans.”
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Dold said losing potential tax revenue would be offset by fewer delinquent student loans.
“I believe as we look at the lack of defaults (in student loans), it actually could be a plus for us,” he said.
Dold said taxpayers should not be upset that their dollars might be used to pay off student loans that didn’t result in people getting good-paying jobs.
“They can say, ‘Look, I want to go into a career that might not let me pay down my student loans nearly as quickly,’ but we still need those individuals.”
A survey by the Society for Human Resource Management found that three percent of the businesses they surveyed already offer this perk.
The business write-off would capped at $5 thousand.