08/08/2024

ASAE Endorses Employer Participation in Repayment Act

The legislation is bipartisan

The American Society of Association Executives (ASAE) recently joined a coalition to make permanent a tax provision that would enable employers to provide tuition and student loan assistance to employees.

The Section 127 Coalition is led by the National Association of Independent Colleges and Universities (NAICU) and the Society for Human Resource Management (SHRM) and includes nearly 60 organizations.

The coalition is endorsing the Employer Participation in Repayment Act, which would permanently enable employers to provide up to $5,250 of annual tax-free, student loan repayment educational assistance as a voluntary benefit to their employees under IRS Section 127. Congress temporarily permitted employer-provided student loan assistance in the Consolidated Appropriations Act signed into law in December 2021, but the provision is set to expire on Jan. 1, 2026.

The legislation was introduced by Sen. Mark Warner (D-VA); Sen. John Thune (R-SD); Rep. Scott Peters (D-CA); and Rep. Nicole Malliotakis (R-NY).

“The Section 127 Coalition believes that enabling employers to invest in their employees by utilizing this voluntary benefit is essential to encourage workers to continue reskilling and upskilling themselves, especially at a time when the demands and skills in the modern workplace are rapidly evolving,” the coalition said in a letter to the co-sponsors. “By providing tax-free, employer-provided student loan repayment assistance, this not only enhances employee well-being and job satisfaction but also serves as an invaluable recruitment and talent retention tool for employers.”

This article was provided to OSAP by ASAE's Power of Associations and Inroads.