Plan helps graduates pay for school loans
5:35 PM
By Dan GearinoLee Newspapers | Posted: Monday, March 12, 2007
DES MOINES -- Employers would get a tax break if they pay employees' student loans under a plan introduced Monday by Iowa legislators.
The Democrat and Republican co-sponsors say the tax incentive is a way to slow down the flow of Iowa's college graduates to other states.
"We're on the verge of a situation where we won't be able to fill our employment needs," said Rep. Jeff Kaufmann, R-Wilton.
Sen. Joe Bolkcom, D-Iowa City, said he wants to explore the idea with the Senate Ways and Means Committee, which he chairs.
"Student debt is a huge issue in Iowa. The General Assembly's inability to make strong appropriations to our state universities has resulted in skyrocketing tuitions and students have turned to borrowing money to pay for college," he said.
The proposal would set up a three-year repayment plan in which employers could repay student debt of up to $25,000 per new employee, with the employer able to claim a tax credit of 30 percent. The three-year plan would allow payment of up to 20 percent of the debt in the first year, up to 30 percent in the second year and up to 50 percent in the third year, so employees that stay on the job for three years could have all their debt paid off.
Read the complete story in Tuesday's Sioux City Journal.
The Democrat and Republican co-sponsors say the tax incentive is a way to slow down the flow of Iowa's college graduates to other states.
"We're on the verge of a situation where we won't be able to fill our employment needs," said Rep. Jeff Kaufmann, R-Wilton.
Sen. Joe Bolkcom, D-Iowa City, said he wants to explore the idea with the Senate Ways and Means Committee, which he chairs.
"Student debt is a huge issue in Iowa. The General Assembly's inability to make strong appropriations to our state universities has resulted in skyrocketing tuitions and students have turned to borrowing money to pay for college," he said.
The proposal would set up a three-year repayment plan in which employers could repay student debt of up to $25,000 per new employee, with the employer able to claim a tax credit of 30 percent. The three-year plan would allow payment of up to 20 percent of the debt in the first year, up to 30 percent in the second year and up to 50 percent in the third year, so employees that stay on the job for three years could have all their debt paid off.
Read the complete story in Tuesday's Sioux City Journal.
Story Comments
Read More and Post Comments 0 comment(s)
Please note: The following are comments from readers. In no way do they represent the views of The Sioux City Journal or Lee Enterprises. We will not edit or alter your comments, but we do reserve the right to not post or to remove comments that violate our code of conduct. No comment may contain potentially libelous statements; obscene, explicit or racist language; personal attacks, insults or threats. Terms of Service
