As student loan payments restart, can employers be a firewall for borrowers? Some groups hope so
As Americans with student loan debt brace for their monthly payments to restart and recover from the recent sting of the Supreme Court's ruling against loan forgiveness, some groups are looking to the workplace as a firewall to funnel aid to borrowers.
SHRM, a group representing human resources professionals, called on Congress and state legislatures «to pass policies that support employees and employers,» according to a June 30 statement issued after the Supreme Court nixed the Biden administration's debt cancellation plan.
Specifically, they want bigger tax breaks for workplace education benefits and an entrenchment of tax policy that's otherwise slated to end in a few years. Advocates argue such tweaks would help put education on a more equal footing with mainstay benefits for retirement and health care, for which employers also get tax breaks.
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SHRM also called for businesses to «support their workers as they navigate their student debt challenges.» Debt payments, which have been on pause for over three years, are poised to restart in October.
Cody Hounanian, executive director of the Student Debt Crisis Center, said he isn't surprised to see an «all-hands-on-deck approach» given the current environment for borrowers, which he called «a recipe for a disastrous situation.»
Few employers offer student loan benefits, which can take many forms.
Seventeen percent offer some type of student loan assistance, according to a 2021 survey by the Employee Benefit Research Institute. Another 31% planned to offer some type
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