Rep. Lipper-Garabedian advocates for policy to assist graduates with student loan debt

  On December 14, 2021, State Representative Kate Lipper-Garabedian testified in a virtual hearing before the Massachusetts Legislature’s Joint Committee on Revenue regarding a bill she filed, H.2985, An Act encouraging employer student loan repayment. Joined by President Rob McCarron of the Association of Independent Colleges and Universities in Massachusetts (AICUM), Lipper-Garabedian advocated for legislation that assists graduates with the often crippling challenge of college debt and further supports employers in their recruitment and retention efforts, promising additional benefit to the Commonwealth’s economy.

  Massachusetts ranks 14th nationwide in debt that students carry when graduating from the Commonwealth’s public universities. Overall, 71 percent of Massachusetts students graduate with debt, with an average amount of roughly $31,000. H.2985 would establish a tax exemption for Massachusetts employers that assist their employees who reside in Massachusetts with paying off student loan debt. The bill sets the annual exemption at $2,000 per employee, helping graduates with college affordability, and employers with workforce recruitment and retention.

  “The broader economic effects of student loan debt are well documented. Numerous studies show the adverse consequences of debt on indicators from homeownership among young adults to small-business formation, family planning, and overall financial growth and security,” said Lipper-Garabedian. “Student loan debt has a disproportionate effect on and can exacerbate wealth gaps of economically vulnerable populations – veterans, seniors, female heads of household, first-generation college students, and communities of color.”

  “I thank Representative Lipper-Garabedian for her leadership and advocacy in support of a program that will help our next generation of employees manage their student loans,” said McCarron. “This legislation thoughtfully builds on the recruitment and retention successes that employers have seen after implementing a student loan repayment program and Representative Lipper-Garabedian’s proposal will provide students and families with another tool to help finance their college education and encourage them to remain in Massachusetts following graduation to join our knowledge-based economy.”

  “Changing economic demands and implications from the pandemic make post-secondary education crucial for residents to adapt to and meet 21st century workforce needs,” said Lipper-Garabedian. “Policymakers should embrace tools that make postsecondary education more affordable.”

  The Joint Committee on Revenue is expected to make a recommendation on the bill in the coming weeks.