Urge Congress to Support the Employer Participation in Repayment Act (H.R. 9164/S. 4778)

SHRM requests that you contact both of your U.S. senators and your U.S. representative to urge them to support the Employer Participation in Repayment Act (H.R. 9164/S. 4778). This bipartisan legislation would permanently allow employers to help employees pay off their student loans under Section 127 of the Internal Revenue Code.

Section 127 allows employees to receive up to $5,250 per year in educational assistance from their employer for eligible education-related expenses, such as tuition or student loan repayment assistance, as a tax-free benefit. This provision incentivizes employees to take advantage of employer-funded education and loan repayment opportunities without the concern of a tax penalty for doing so. This provision is set to expire on Jan. 1, 2026.

According to the Education Data Initiative, 42.8 million borrowers have federal student loan debt in the U.S., and the average federal student loan debt balance is nearly $38,000. These high levels of student loan debt create a significant financial burden and can negatively affect employees’ mental and physical health, impacting productivity and performance in the workplace.

Tax-free, employer-provided student loan repayment assistance not only enhances employee well-being and job satisfaction but also serves as an invaluable recruitment and talent retention tool for employers.

Employers and policymakers must work together to alleviate stresses on employees and maintain a productive workforce so all parties can compete and succeed in the modern global economy.    

Stay tuned for more updates on this critical workplace issue. If you have any questions about this campaign, please contact SHRM Government Affairs at governmentaffairs@shrm.org.