*By Justin Chermol* The daunting task of paying back astronomical student loans may soon be less taxing, California Congressman Scott Peters tells told Cheddar Tuesday. Rep. Peters (D-Calif.) has received 99 co-sponsors on his bipartisan Employer Participation in Repayment Act, which would allow employers to contribute to their employees' student loan payments, tax-free. "The idea is this: if you go to work for a company, they can pay off up to $5,250 of your student loans in a year without it being income to you, so it's not taxable to you," Peters told Cheddar's J.D. Durkin. "If you talk to any young person about ... the big thing on their mind: it's student loan debt. They're not buying a house, they're not getting a car, they're living with their parents, all because they have this burden." According to a recent [report](https://www.federalreserve.gov/publications/files/consumer-community-context-201901.pdf) from the Federal Reserve, the rise in student loan debt from 2005 to 2014 has contributed to a decline in home ownership. Nearly one in four American adults are paying off student loans. That amounts to over 44 million citizens who hold collectively almost $1.5 trillion in student debt. "The average debt now, out of a public university: $30,000 for each kid," Peters said. Peters also said that the bill could benefit the employer as well ー as educated talent will be attracted to jobs that offer this tax-free incentive. Peter said he feels good about the bill's chances of at least making it to the House floor for a vote. "I am more optimistic about that in this Congress with Mrs. Pelosi, rather than Mr. Ryan. I think that we are likely to deal with this issue in a serious way," Peters said. "That's the first step."

Share:
More In Politics
Markets Rebound on Potential Covid-19 Pill from Merck
Futures rebounded this morning in reaction to positive news from Merck that its covid-19 treatment pill is 50 percent effective at preventing hospitalizations and death. It comes after a rocky month on Wall Street, which saw all the major averages post their worst months in over a year. Chris Vecchio, Senior Analyst, at DailyFX joined Wake Up with Cheddar for more.
Weekly Jobless Claims Rise to 362,000, Missing Expectations of 335,000
U.S. weekly jobless claims rose to 362,000 for the week ending September 25th, higher than the 335,000 economists had expected. This figure is also slightly higher than the 351,000 reported a week earlier. Louis Cordone, Senior Vice President of Data Strategy at AST joined Wake Up with Cheddar to discuss.
Load More