Empowering Our Future Workforce
Since we have been faced with the COVID-19 crisis I’ve proposed a long list of policy ideas to help individuals, families, workers, small business owners, and health care professionals. Ultimately the Government should act smartly and quickly when it is truly needed, while remaining as limited as possible and staying out of our lives when it is not.
One area that has been an ongoing problem even before Coronavirus is our ever-increasing student loan debt. The sheer amount and yearly additions to this debt are staggering. This crippling student debt is limiting the potential of our best and brightest for generations to come.
One of the answers to this problem is a change in behavior. We should counsel students on the benefits of trade schools and community colleges, and the excellent educational value of our public institutions. But even then, people will often leave school with debt.
We have seen several burdensome regulations lifted in order to provide more flexibility during this crisis. In the same vein, we have an opportunity to address this issue now before it gets worse, and COVID-19 has already worsened the situation when students are graduating but are now unable to obtain employment.
We should make it a little easier, and do so by letting you keep more of your own money. That is why I support the HELPER Act to help offset the rising costs of repaying student loans.
The bill has three key elements:
First, it provides tax deductibility for employer-sponsored loan repayments, so your employer can offer this as a benefit.
Second, it allows for up to $5,250 per year to be taken from a 401k to pay for loan repayments for yourself, a spouse or a dependent.
And, third, it eliminates the caps on student loan interest deduction on taxes.
All together, this will provide real savings and opportunity for people to afford higher education and repay their loans. We should focus our efforts on things that help people help themselves, through tax breaks and incentives. The HELPER Act does just that.
Don’t hesitate to send me your ideas too. I’m working hard for you, every single day.
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