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 dollars 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. We want to make sure this benefit is tax free," Davis said. "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 dollars in student loans.
Davis outlined his proposed Employer Participation in Student Loan Assistance Act last week at three college campuses: ISU, and the University of Illinois’ Urbana and Springfield campuses.