In a contributed article for The Hill, Ceannate Corp. CEO Balaji “Raj” Rajan demonstrates his support for new proposals that would incentivize private employers to help employees repay student loans.
Currently, when an employer makes a payment on an employee’s student loan, the payment is taxed like income for the employee. The proposals, the "Employer Participation in Repayment Act of 2016" and the "Dynamic Repayment Act of 2016" put forth by Rep. Rodney Davis (R-Ill.) and Sen. Mark Warner (D-Va.), would allow employers to help qualified employees repay student loans with pre-tax dollars.
“By enabling private sector employers to assist employees in tackling their student loan debt, the Davis and Warner bills will create large-scale social, economic and cultural benefits, just as 401K plans did for retirement planning,” said Rajan.
Read the full OpEd “Congress should incentivize private employers to help employees repay student loans” on The Hill.