The American Fintech Council (AFC) has announced its support for the Employer Participation in Repayment Act, a bipartisan and bicameral bill. This legislation, introduced by Senators Mark Warner and John Thune along with Representatives Nicole Malliotakis and Scott Peters, aims to make permanent the tax exemption for employer contributions to employee student loans. Initially established under the CARES Act, this exemption is set to expire on January 1, 2026.
If passed, the legislation would allow employers to contribute up to $5,250 per year toward employees' student loans without tax implications. This could provide new opportunities for workers to reduce debt more quickly while helping businesses attract and retain talent.
Ian P. Moloney, Senior Vice President and Head of Policy and Regulatory Affairs at AFC, stated that "the passage of this legislation would mark a major step toward ensuring long-term financial security for millions of Americans burdened by student debt." He added that fintech companies have shown how employer-sponsored repayment programs can improve financial outcomes for employees.
AFC member Candidly has been active in facilitating these benefits. The company has helped facilitate over $100 million in tax-free employer student loan contributions through the current exemption. Laurel Taylor, CEO and Founder of Candidly, emphasized the importance of making these contributions a standard practice in workplaces across America. She stated that "only through sustained policy commitment can we scale this proven benefit category."
The AFC is a trade association representing large financial technology companies and innovative banks. It supports responsible innovation in financial services and promotes sound public policy. The organization advocates for competition in consumer finance and seeks to serve underserved consumer segments effectively.