Davis Bill Aims To Cut Student Loan Debt, Provide Incentive To Employers
Illinois Congressman Rodney Davis wants to give employers a hand in helping to pay off student loan debt for the recent college graduates they hire. The Taylorville Republican introduced a bill in the House this week that will let those employers offer a tax-free benefit of just over $5-thousand to attract new hires - and also help current workers with continuing education.
Davis says current student loan re-payment programs are unfair.
“When you get your W2 – that amount, that benefit – is charged to you," he said. "We want to make sure this benefit is tax free. You’re going to be able to actually get that benefit, in addition to what you’re getting as a salary. And that employer is going to be able to use that as an incentive to hire you.”
Current college graduates average about $30-thousand in student loans.
Davis outlined his proposed Employer Participation in Student Loan Assistance Act Friday at three college campuses - Illinois State University, and the University of Illinois’ Urbana and Springfield campuses.
The bill's co-sponsor is Democrat Gwen Graham of Florida. Davis says as President Obama prepares to leave office, he’s shown a willingness to focus on issues impacting the future of higher education.