Federal: AFC Letter in Support of the Employer Participation in Repayment Act

The Honorable Mark Warner
United States Senate
703 Hart Senate Office Building
Washington, DC 20510

The Honorable John Thune
United States Senate
511 Dirksen Senate Office Building
Washington, DC 20510

The Honorable Nicole Malliotakis
U.S. House of Representatives
464 Cannon House Office Building
Washington, DC 20515

The Honorable Scott Peters
U.S. House of Representatives
2369 Rayburn House Office Building
Washington, DC 20515

Re:       AFC Letter in Support of the Employer Participation in Repayment Act

Dear Senators Warner and Thune, and Representative Malliotakis and Peters,

On behalf of the American Fintech Council (AFC), we write to express our strong support for the Employer Participation in Repayment Act (the Act), and thank you for your bipartisan, bicameral leadership on this issue.

AFC’s mission is to promote an innovative, transparent, inclusive, and customer-centric financial system by fostering safe and responsible innovation in financial technology (Fintech) and encouraging sound public policy. AFC members, made up of fintech companies and innovative banks, are at the forefront of fostering competition in financial services and pioneering ways to better serve underserved consumer segments and geographies. AFC and its members strongly support the development and implementation of regulatory frameworks that encourage the responsible development of innovative financial products and services.

AFC members operating in the student lending space are comprised of loan originators and servicers, as well as companies that offer other innovative services, such as a unique debt and savings platform for student borrowers. AFC and its members recognize that the existing burden of student loan debt remains a significant challenge for millions of Americans, impacting their ability to save for retirement, purchase homes, and invest in their futures. AFC has consistently advocated for the development of creative policy solutions that help individuals improve their financial lives and build a stronger workforce. By solidifying the important tax benefits for student borrowers originally included in the CARES Act, your bipartisan effort to enhance employer participation in student debt repayment programs recognizes the critical role that public-private partnerships play in addressing this crisis.

Specifically, AFC supports the Act’s aims of expanding employer-sponsored student loan repayment assistance programs and modernizing employer-provided educational assistance benefits. AFC believes that this important bill will ensure much-needed permanency to a tax provision providing relief to millions of student loan borrowers while helping businesses attract and retain talented employees.

If passed, the Act would dramatically improve the lives of workers by allowing employers to make tax-free contributions of up to $5,250 toward employees’ student loans and facilitating greater flexibility in educational assistance benefits. Critically, your legislation will create a more sustainable and supportive pathway to financial security for American workers and afford businesses a unique opportunity to attract and retain employees.

AFC commends your leadership in championing this pragmatic and important legislation and urge swift congressional action to cement these provisions into law, permanently We look forward to working with you to support its passage and to ensure that American workers have the financial tools they need to succeed.

Thank you for your leadership and commitment to bettering Americans’ financial futures.

Sincerely,

Ian P. Moloney
SVP, Head of Policy and Regulatory Affairs
American Fintech Council

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