Western South Dakota News

U.S. Senators John Thune and Mark Warner, along with Representatives Nicole Malliotakis and Scott Peters, have reintroduced the Employer Participation in Repayment Act. This bipartisan legislation aims to provide a permanent solution for Americans dealing with student loan debt by allowing employers to contribute up to $5,250 tax-free toward their employees' student loans.

In 2020, Thune, Warner, and Peters successfully negotiated the inclusion of a similar provision in the CARES Act. This temporary measure was later extended until January 1, 2026, as part of a government spending package. The new legislation seeks to make this tax benefit permanent, offering employees significant relief while giving employers an effective tool for attracting and retaining talent.

"Incentivizing employers to help repay their employees’ student loans was a common-sense step Congress took to address the high levels of student debt that borrowers face," said Thune. He emphasized that the bill provides a dual benefit by aiding both graduates and their employers without imposing additional costs on taxpayers.

Warner shared his personal experience with student loans as the first in his family to graduate from college. "Unfortunately as the cost of higher education continues to skyrocket, so has the rate of Americans who turn to student loans to pay for college," he noted. Warner highlighted that too many Americans are struggling with difficult-to-manage student loan debt and expressed hope that this bipartisan initiative would alleviate some of these financial burdens.

By making employer contributions toward student loans tax-exempt, the legislation offers a strategy for companies to recruit and retain skilled workers while assisting employees in managing their financial futures.