March 25, 2020
Statement from GradFin CEO Chris Walters On Inclusion of Student Loan Provision in Economic Stimulus Package
“We applaud the U.S. Senate, House, and the President for advancing a tax-free student loan employer contribution provision in the Coronavirus economic stimulus legislation,” said Chris Walters, Founder and CEO of GradFin (www.GradFin.com). “This significant development for student loan borrowers facing economic uncertainty allows employers to make tax-free student loan contributions to employees through the end of the year. We also support the proposal providing for a temporary suspension of all federally-owned student loan payments (principal and interest) until September 30, 2020.”
The stimulus bill provides an annual tax exclusion of $5,250 per employee per year to cover student loan payments to employees. The provision applies to any student loan payment made on behalf of the employee by the employer before January 1, 2021. The other student loan provision, the suspension of student loan payments, reduces borrowers’ monthly federal loan payments to zero for the next six months.
“GradFin believes that the best way to help the 43 million Americans saddled with more than $1.5 trillion in student debt is to incentivize companies to get involved in the student loan payoff process,” said Walters. “This new tax-free benefit, in addition to our multi-lender bank marketplace and access to student loan consultants, allows GradFin to comprehensively help student loan borrowers tackle their student loan debt. We will also help our customers understand the stimulative impact of the suspension of payments on their student loans, which will help borrowers save in other ways.”
GradFin was founded in 2015 with the mission to help student loan borrowers repay their loans faster and achieve their financial goals. GradFin works with over 5,000 companies across the country to help employees tackle their student loan debt. GradFin was one of the first companies in America to administer employer contribution plans, has the largest and most competitive student loan bank marketplace in the industry, and gives access to our corporations to free student loan consultations with trained student loan experts.