For us college women, the phrase “student loan debt” is enough to make us hide in bed for a week with the covers pulled over our heads. It’s terrifying to think about what’ll happen when we get out of college and have to start paying off loans, worrying about taxes and dealing with growing interest rates. We may have some good news for you though! Get this—There are two bills currently floating around in Congress that might give your boss an incentive to help you with student loan debt.
According to Refinery29, the bills are looking to change the tax code so that when your boss gives you money for your loans, that money counts as nontaxable income.
Right now, when workers are given money for their student loan debt, its considered taxable for both the employers and employees, and employers are not about that because it basically just means a lot of extra spending for them—Nobody likes paying more in taxes. However, if these bills pass and the tax code is expanded, employees struggling with student debt could get up to $5,250 a year of nontaxable money to go towards their student loans.
Our current graduating classes seem to have more debt than ever, and it is scary for us. Any amount of extra money helps, especially if we’re able to pay off some debt while also saving for retirement.
The bill probably won’t pass during an election year, but backers are still optimistic that this can one day be a reality, according to Refinery29. For now, we’re happy to imagine a world without a $30,000 monster clinging to our backs for the rest of our lives.