Kinzinger Sponsors Biparty Bill to Help Americans Reduce Student Debt
US Representative Adam Kinzinger (R-IL) recently sponsored bipartisan legislation that would allow deduction of interest paid on student loans without reduction for employer education assistance.
“Currently, Americans collectively owe over $ 1.6 trillion in student loan debt,” Representative Kinzinger said on May 6. “This growing problem will continue if we don’t make practical changes to resolve it now.
Last week, Representative Kinzinger introduced Ending Debt Under the Corporate Engagement Act HR 2983 (REDUCE) Act, with U.S. Representative Stephanie Murphy (D-FL) to enable employees to take advantage fully tax-free payment options created by the employer. into the CARES Act and continue to maximize their student loan interest deduction each year, according to an invoice summary provided by Representative Kinzinger’s office.
Currently, the deduction is reduced by the amount of what the employer pays on the loan, the summary says, but if passed, HR 2983 would help borrowers repay their loans faster.
“The REDUCE law will offer a simple adjustment to the tax code, giving employees a more effective tool to pay off student loan debt faster,” said Representative Kinzinger.
Representative Murphy noted that nearly 45 million Americans – including 2.6 million Floridians – have student loan debt. “I am proud to co-lead this bipartisan bill with Congressman Kinzinger to give student loan borrowers another tool to ease this burden,” she said.
HR 2983 was referred for consideration to the US House Ways and Means Committee.