Employer Participation in Repayment Act

# Employer Participation in Repayment Act (HR 1801) - Summary **What the Bill Would Do** The Employer Participation in Repayment Act would allow employers to contribute money directly toward their employees' student loan debt without that contribution being counted as taxable income to the employee. Currently, when employers help pay down student loans, the IRS typically treats this as taxable compensation. This bill would change that tax treatment, making employer contributions a tax-free benefit—similar to how employer-sponsored health insurance works. **Who It Affects and Key Provisions** The bill primarily benefits employees with student loan debt and their employers.

Workers could receive financial help paying their loans without facing a tax penalty, while employers could offer this as a recruitment and retention tool without worrying about creating a tax burden for their workers. The specific details of how much employers could contribute, which types of loans would qualify, or what restrictions might apply are not detailed in this summary. **Current Status** As of now, HR 1801 is in committee, meaning it has been introduced but has not yet advanced to a full floor vote in the House of Representatives. The bill was sponsored by Representative Nicole Malliotakis (R-NY).