Gradifi Endorses The Bipartisan Employer Participation In Repayment Act
February 12 2019 - 5:57PM
Business Wire
Legislation Could Potentially Offer Relief
To Millions of Americans, Motivate More Employers To Offer A
Student Loan Repayment Program
Gradifi, a leading provider of student loan and college saving
employee benefits, today announced its support for the Employer
Participation in Repayment Act introduced by Senator Mark Warner,
Senator John Thune, Senator Ed Markey, Congressman Scott Peters,
and Congressman Rodney Davis.
The Employer Participation in Repayment Act is bipartisan
legislation to expand the employer-provided educational assistance
program to include employer-provided student loan repayment
assistance. The bill would allow employers to offer their employees
student loan repayment assistance up to $5,250 per year and would
exclude that contribution from the employee’s gross taxable income.
Currently, when employers offer student loan repayment assistance
to their employees the benefit is taxed as ordinary income.
A growing number of employers nationwide are seeking to reduce
the burden of student loan debt, which totals more than $1.5
trillion and impacts more than 45 million Americans. A unit of
First Republic Bank (NYSE:FRC), Gradifi’s student loan repayment
program is used by more than 500 U.S. employers that are making a
contribution to pay down an employee’s student loan debt
faster.
“The Employer Participation in Repayment Act is game-changing
legislation that will provide the opportunity of relief for
millions of Americans struggling with student loan debt and will
motivate many more employers to offer a student loan repayment
benefit,” said David Chang, Chief Executive Officer of Gradifi.
“Excluding employer student loan payments from gross income will
make this employee benefit more affordable and has been the missing
incentive preventing many companies from offering this
benefit.”
An employer contributing $100 per month would help an employee
with $26,500 – the median amount borrowed for a bachelor’s degree –
get out of debt three years faster, saving over $10,000 in
principal and interest over 10 years assuming a 4% interest
rate.
Gradifi’s SLP Plan® (Student Loan Paydown) is a cloud-based
solution that enables employers to make direct contributions to an
employee’s student debt. It is one of three workplace solutions
from Gradifi to promote financial wellness by minimizing student
loan debt. Gradifi Refi gives employees immediate access to leading
student loan refinancing lenders with exclusive offers at no cost
to the employer. Gradifi’s College SaveUp Plan allows employers to
make contributions to employees’ 529 college savings plans and ease
the stress of paying for college.
“On behalf of Gradifi and First Republic, we thank Senator
Warner, Senator Thune, Senator Markey, Congressman Peters, and
Congressman Davis for reintroducing this bill and continuing to
champion employer participation in student loan repayment,” Chang
said. “Allowing employees to receive a tax-free student loan
repayment contribution from their employers will enable individuals
to pay off their loans faster, saving thousands of dollars in the
process. We strongly urge Congress to move quickly to pass this
much-needed, bipartisan legislation and allow employer-provided
student loan benefits to be tax free for employees.”
About Gradifi
Gradifi is an innovator in employee benefits for U.S. employers.
Gradifi’s mission is to help employers build loyalty with their
workforce by providing employee benefits that positively impact
their employees’ financial well-being. Gradifi offers an
all-in-one, cloud-based platform that allow employers to offer
employees student loan refinancing opportunities, and
employer-sponsored contributions to student loans and 529 college
savings plan accounts. A unit of First Republic (NYSE:FRC), Gradifi
works with employers of all sizes across the U.S.
www.gradifi.com.
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Gradifi Media ContactFor GradifiEd Harrison,
781.966.4158gradifi@inkhouse.com
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