GradFin Tweets to Trump; In Other News, Student Loan "Employer Match" Legislation Reaches 20 Cosponsors
Today @GradFin tweeted Presidential nominee Donald Trump (@RealDonaldTrump) to see if he supports legislation to provide a tax exclusion for employees that receive student loan repayments from their company. We even through in a comment that this would help the economy and accelerate the payoff process for employees. @GradFin did not get a reply to this tweet, but we will keep beating the drum, because we know at some point we will be heard above all the political noise.
Because Donald Trump has won 3 of 4 early primary states so far, and because there are 13 more on Super Tuesday, and he is likely to win most of them, we figured we would start pushing our message with him. Whoever is elected as President needs to know that there are specific ways to help resolve the student loan crisis and this legislation is one of the only private sector solutions to help Americans out of debt fast.
We also wanted to update our readers that last week we gained 4 new cosponsors to H.R. 3861, legislation introduced by Congressman Rodney Davis of Illinois. GradFin supports this legislation because it provides an annual tax exclusion for student loan repayments by employers to their employees. The newest cosponsors are Congresswoman Elise Stefanik (R-NY), Congresswoman Ami Bera (D-CA), Congressman Daniel Donovan (R-NY), and Congressman Steve Womack (R-AR).
There are now 20 cosponsors in the House of Representatives that support H.R. 3861. This is a great showing, and we think will clearly start to get some attention thrown its ways by Ways and Means Committee Members as they look at legislation that helps solve the student loan crisis.
Remember, if passed, this legislation would provide a $5,250 tax exclusion for employees that receive student loan payments from their companies. This is a big deal because it would ensure that much of the help from employers is not taxed and therefore goes to paying down borrowers loans rather than going to the IRS.
We will keep our readers updated on the latest developments in our efforts to pass legislation dealing with the student loan crisis.
As GradFin travels the country, meeting with one company at a time, we are excited that more and more companies are interested in offering a plan to help their employees with student debt. With over 70% of recent college grads leaving school with debt, we are pleased to offer an employee benefit program that is strategically tailored to meet the needs of a 21st Century workforce.
It is our goal to add value to your current employee benefit program structure. We are very interested in engaging with you and your employees to discuss how our product can help retain the best employees, and more importantly, how your employees will be able to save lots of money with our accelerated student loan payoff structure.
One of the most attractive features about the relationship we have with our customers is our interactive "town hall" style meetings, We will come to your workplace and these town halls are designed to educate your employees on the best ways to accelerate their loan payoff process. GradFin takes pride in providing individualized client solutions to put student loan borrowers on the best path to paying off their "whale" of student loan debt.
GradFin provides borrowers with individualized payoff charts to allow borrowers to compare their current plan (based on their current loan terms) with a plan on how GradFin will help save money and accelerate the payoff process. We are the only company to offer a reduced interest rate combined with an employer "match", allowing borrowers to save the most money over the long run.
Each of our customers has different needs, some have a high number of recent college graduates, others employ a high number of lawyers or medical professionals. With that said, all of our customers value their employees and we are happy to work with them to explore how GradFin can best work for them.
As you think about adding an employer benefit to meet the needs of the Millennial workforce, where more than 7 out of 10 college graduates is burdened with debt, please consider adding an employee benefit package with them in mind.
Happy Presidents' Day 2016! Today is a good day to reflect on the history of our nation and remember the 44 Presidents that served our country. But rather than offering up random historical memories of our greatest presidents, GradFin is going to focus in on how several of our Presidents felt about DEBT.
Here are some of the noteworthy Presidential quotes on Debt:
"No pecuniary consideration is more urgent, than the regular redemption and discharge of the public debt: on none can delay be more injurious, or an economy of time more valuable."— George Washington (1732-1799) Father of the Country, 1st President of the United States
“I place economy among the first and most important of virtues, and public debt as the greatest of dangers to be feared.” - Thomas Jefferson, 3rd President of the U.S.
"I regret, as much as any member, the unavoidable weight and duration of the burdens to be imposed; having never been a proselyte to the doctrine, that public debts are public benefits. I consider them, on the contrary, as evils which ought to be removed as fast as honor and justice will permit." — James Madison (1751-1836) Father of the Constitution, 4th President of the United States
“Let every man, every corporation, and especially let every village, town, and city, every county and State, get out of debt and keep out of debt. It is the debtor that is ruined by hard times.”— Rutherford B. Hayes (1822–1893) Nineteenth President of the United States
"Blessed are the young, for they shall inherit the national debt." -Herbert Hoover (1874-1964), 31st President of the U.S.
"Any Government, like any family, can for a year spend a little more than it earns. But you and I know that a continuation of that habit means the poorhouse." -- Franklin Delano Roosevelt
Just three months since Congressman Rodney Davis (R-IL) offered a fantastic solution (H.R. 3861) to reduce taxes for employer-sponsored student loan payments, U.S. Senator Mark Warner (D-VA) joined in on the game. The legislation is the same as the Rodney Davis bill - S. 2457, the Employer Participation in Repayment Act of 2016. GradFin is excited about this new piece of legislation because our Founder is a resident of Virginia, the state of Senator Mark Warner. Take a look below at Senator Warner's video on student loans.
According to U.S. Senator Mark Warner's website, "the Employer Education Assistance Program allows employers to contribute pre-tax earnings to help employees finance continued education, but does not allow relief for individuals who already have incurred student loan debt in the course of their undergraduate or graduate careers. TheEmployer Participation in Repayment Act would help those with student loan debt by allowing employers to contribute up to $5,250 pre-tax to their employees’ federal or private student loans – providing employers with a new tool to recruit and retain quality employees. Sens. John Thune (R-SD) and Shelley Moore Capito (R-WV) joined Warner in sponsoring the Employer Participation in Repayment Act. To read the bill, click here."
A survey released this week indicates that employees are strongly interested in student loan repayment benefit programs. As more and more graduates leave school with student debt and enter the workforce, we are starting to see clear signs that employer benefit packages with student loan repayment assistance could be the next big thing. The survey was conducted by Beyond, the Career Network, an online job career portal.
Of the 5,000 job seekers that were surveyed, 89% of the respondents indicated a desire for companies to offer student loan repayment programs. This is a massive number and significantly proves that the student loan market is salivating for employers to step up to help them.
The survey indicates that over 67% of respondents would "absolutely" be more willing to accept a job with an employer that offers student loans. This question stands out in our mind because it establishes a difference between an employer that offers a student loan benefit versus one that does not. It is clear people would seriously factor this into their decision making process when deciding where to work.
The survey found that 81% of respondents would rather stay with a company that offered the benefit than lose the benefit if they left. This is one of the points GradFin has been making for a long time. We believe retention rates would increase if companies add a student loan repayment benefit. If you want your employees to stay, help them with their student loans.
More information about the survey can be found here: http://www.businesswire.com/news/home/20160201005086/en/Survey-Finds-Student-Loan-Reimbursement-Hot-Benefit
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