Have you heard of the H.R. 4363 bill that was introduced into Congress? If not, have no fear as we will explain the bill in more detail below. But, before we get into the meat of what this bill is, did you know that many students struggle to pay their Student loan bill? In fact, you may even be struggling to pay your student loan payment right now.

Student loan debt is a growing problem and it will continue to grow unless something is done about it. The intention of this new bill is to help solve the problem and make paying back student loans a little easier for students.

If we were to ask you what you think paying your student loans means, you may answer with something like, “not being able to avoid poverty,” “giving up some of the things you love most,” and similar answers. It should never get to this point, but it does for most students. This new law would help offset these types of answers and give students the opportunity to pay the amount they owe without having to live way under their means.

Ready to learn more about the bill and how it can help? Let’s take a look at it!

The H.R. 4363 Bill

The bill is called the H.R. 4363 and is often referred to as the Student Tax Affordability and Relief Act. This bill was placed front and center in the House of Representatives and it has been written in a way that it will help students with their student loans. The bill specifically addresses and talks about how an exclusion should be included for gross income on the amount of money that a students’ employer pays towards that students’ student loans. The income cap would be set at $10,000.

You may still be asking what all of this means and it means that any amount of money that an employer pays towards a students’ student loans will be excluded from the students’ income amount. The amount paid would be considered student loan payment assistance and not negatively impact the student.

Is This the Only Program to Help with Student Loan Debt?

No. There are many programs out there that are designed to help students and alleviate some of the pressure they feel when it comes to paying their student loans. Not every state offers specializes programs, but these programs are starting to pop up all over the place.

One state that is thinking about students is New York. In fact, they have a program in place called Get on Your Feet. This program is designed to help keep students out of poverty and allow students to essentially get on their feet before they have to start making student loan payments. The program will pay two years’ worth of student loan payments for a qualified student. To qualify for this program, a student must make less than $50,000 per year, which may not be hard for many new graduates, especially with the way the economy is.

Another program in place is offered to students in Minnesota. The program works to reduce the interest rate that students pay on their student loans. To qualify, students will need to refinance their student loans and in return, they will receive a low interest rate that is never to exceed 6.95 percent. This new interest rate can help save many student thousands of dollars per year and over the lifetime of their loan, especially those who receive a low rate in the two to five percent range.

In addition to the above programs that are in place, many employers are starting to work with employees and offer tuition assistance or student loan repayment options for those who work for a qualified amount of time. This type of a program is beneficial for both the student and the employer as the student’s loan is paid down and the employer receives a dedicated employee.

If you are interested in learning more about financial aid programs or student loan repayment assistance, talk to your local financial aid counselor today.