LOS ANGELES, March 27, 2020 /PRNewswire/ -- Tuition.io today praised the U.S. Congress for passing the coronavirus stimulus bill which includes a tax break for student loan payments made by employers. As part of the bill, employers will be able to make tax-free payments towards their employees' student debt through the end of the year.
"We applaud the government stimulus bill for including a provision on income tax exclusion for individuals who are receiving student loan repayment assistance from their employer," stated Scott Thompson CEO, Tuition.io. "Providing a tax subsidy for employer student loan repayment doesn't just benefit individual workers, it will help reduce a major drag on the overall economy as we recover from the COVID-19 shock. Even if only temporary, this groundbreaking legislation will enable companies large and small to help America's working people make it through this historical crisis."
The burden of student loans has topped $1.6T, with the average individual holding nearly $30,000 of debt. Before the COVID-19 pandemic hit, the effect on borrowers was profound with many putting off major life milestones such as saving for retirement or buying a house. In 2019, more than 11 million Americans were past due or in default on a student loan. The impact of COVID-19 on the economy has been swift and unprecedented, further stifling workers and employers who were already feeling the pressure of financial stress.
Tax relief for employer-sponsored student loan repayment was introduced by Representatives Rodney Davis (R-IL) and Scott Peters (D-CA) and Senators Mark Warner (D-VA) and John Thune (R-SD) as the Employer Participation in Repayment Act. The legislation had strong bipartisan support and applause from those in the industry looking to help their employees repay their student debt.
Tuition.io is the leading benefits platform tackling employee student loan debt. Through its suite of education assistance benefits including student loan repayment, tuition assistance and a bevy of financial wellness tools, Tuition.io provides an impactful and meaningful solution for employers and employees. Tuition.io works with innovative companies across all industries including Carhartt, City of Memphis, Estée Lauder Companies, Hulu, Live Nation, Staples, Trilogy Health Services and more. For more information, visit www.tuition.io or follow us at @Tuition.io.