As we continue to fight the health and economic impacts of the pandemic, families are being forced to stretch their household budgets, and for many, student loan payments are a large line item that causes folks to pinch pennies when it comes to paying for the necessities.

Thankfully, my colleagues and I have scored crucial wins to combat this crisis.  The Coronavirus Aid, Relief, and Economic Security (CARES) Act and H.R. 133, the Consolidated Appropriations Act, incorporated language from my bill to provide student borrowers with immediate relief.  Specifically, they included the portion of my Decreasing Employees Burdensome Taxes from Student Loans (DEBT) Act, to allow employers to temporarily make direct, non-taxable payments up to $5,250 toward employees’ student loans.  I’ve been advocating for these policies since the 115th Congress.

This Congress is no different.  Earlier this month, Representative Kathleen Rice (D-NY) joined me to re-introduce the H.R. 902, the DEBT Act to ensure folks can benefit from these policies well beyond the pandemic.  The DEBT Act encourages employers to contribute up to $10,000 per year to their employees’ student loans as a non-taxable benefit.  Ultimately, this allows student borrowers to keep more of their paychecks and helps businesses recruit and retain talented employees in the workforce. 

Because easing the burden of student loan debt is not a one-step solution, Representative Rice and I also introduced the Student and Families Empowerment Act, H.R. 891.  This bill would give parent borrowers, who often don’t receive a grace period, and recent graduates, twelve full months, instead of six, to begin making payments on their federal loans.  Interest would not accrue during these twelve months.  H.R. 891 would also remove the current $2,500 cap on deductions for student loan interest, and instead apply the same treatment used for home mortgage loans (a limit of $750,000).  These changes will ensure that student loan debt does not hamstring folks and allows them to put their paychecks towards buying their first home, establishing life savings, and investing in their future.

The bipartisan agreement on our bills gives even more evidence to the clear, overwhelming consensus: we need to take action to address the student loan crisis.  The current data is frightening.  Over 45 million borrowers owe over $1.64 trillion in student loans, with the average monthly payment ranging between $200 and $300. 

My colleagues and I have been willing to reach across the aisle to find ways to address this issue.  We know that freeing up more of student borrowers hard-earned money helps not just individuals and families, but local economies as a whole.  I believe the best solutions involve the private sector, as it will simultaneously help borrowers take control of their financial future, keep the government from adding trillions in interest accumulation to an already out-of-control debt, and provide employers an incentive to attract top talent.