GOP Congressman: Let Employers Pay $10K of Student Loans Tax-Free
This is actually a pretty good idea. Let’s hope it gets some attention.
Red Alert Politics reports.
GOP Congressman: Allow employers to pay $10,000 of student debt tax-free
Georgia Representative Austin Scott recently promoted his plan to relieve college graduates of the massive student debt burden.
Scott’s plan would allow employers to pay up to $10,000 a year of their employee’s student debt. Under his plan, the payment would not count as taxable income.
Scott pointed out that if an employer paid $10,000 and the former student was in a 25 percent tax bracket, that would be $2,500 in tax consequences.
“Let’s let the employers, if they hire somebody, make that a part of their benefits package to help pay off some of their student loans and let’s not tax the students on that benefit,” he said.
Katharine Manroe, an International Affairs and Political Science major at the University of Georgia, praised Rep. Scott’s attempt to alleviate recent graduates from what she sees as an unfair financial repercussion.
“As a student with loans to pay back, I would welcome Representative Scott’s plan to help students,” states Manroe. “Student loans are there to make higher education more affordable, so we should stop penalizing graduates for taking out loans by unfairly taxing them.”
English major Elizabeth Ridgeway also views Scott’s plan as “a beneficial development.”
Ridgeway said she believes the plan will “help diversify student bodies” by incentivizing people from lower-income backgrounds to attend college. She believes that by giving lower-income students the hope of financial assistance, even after graduation, “we can encourage more people to engage in higher education.”
GOP Congressman: Allow employers to pay $10,000 of student debt tax-free (Red Alert Politics)