SLSTEAA Case Studies

Dear Colleague:

As we consider the Student Loan Support Through Employer Aid Act (SLSTEAA), I would like to bring to your attention two key issues as the issues relate to the rising cost of higher education and private or public businesses role in higher education.

As you know, the cost of higher education has steadily risen through the years and students are going into increasingly more debt to finance their education. Furthermore, most students must maintain a job to defray the cost of living, especially if their family can not help them monetarily.

With an increase in students working and the cost of higher education rising, businesses have stepped up to help pay for some of the education costs of their employees, however, the amount business can pay without reporting it on the employee’s income under the tax code is $5,250. $5,250 is hardly a dent in most student’s education expenses but it does provide some help. In addition, current tax code does not allow for businesses to pay directly on an employee’s student loans.

Such an increase and allowing businesses to pay directly on student loans, would not only incentivize more students to work and keep current students working during their college careers but incentive more business to offer programs to pay an employee’s education costs. Even further, students who are currently already apart of these programs businesses offer would benefit from the increase. I hope you that will consider SLSTEAA will take into consideration the rising cost of education and how limited business are in helping their student employees under current