State Rep. Kate Campanale introduced legislation today aimed at addressing the serious and growing student loan debt crisis. HD 4567 is an act that establishes a tax credit and personal income tax deduction for student loan assistance, as well empowering employers and employees to treat student loan debt much like a 401(k) contribution.



This legislation would incentivize both employees and employers in Massachusetts to contribute directly to the employee�s student loan debt by treating payments to student loan debt as non-taxable income to their state taxes, and offering tax credits to companies who make direct contributions to their employees� student loan debt up to $4,500 per year.



�Over the past six months I have been working closely with local companies as well as large corporations in Massachusetts and have quickly realized the growing want and need for this type of program not only across Massachusetts, but across the country,� Campanale said. �This bipartisan effort is quickly gaining broad support from republicans and democrats, as well as businesses large and small.�



Student loan is currently the second largest type of consumer debt in America. It creates a massive burden, both financially and emotionally on many Americans. According to recent statistics, the average college student in Massachusetts will graduate with over $35,000 in student loan debt. The levels of debt for those just starting out will have lifestyle, and emotional, consequences. Research shows that young adults with this high debt burden are less likely to pursue homeownership, start a family, start a business and they have difficultly saving for retirement.



Andrea Piatt, Ph.D. and CEO for Commonwealth Psychology Associates, is enthusiastic about this legislation stating, �As a small business owner, I�m grateful that our legislators are taking action to address our nation�s student loan debt crisis. Working together, business and government have the power to solve this problem and alleviate the overwhelming practical and emotional burdens faced by so many of our citizens. It�s wonderful to see Massachusetts setting an example for other states to follow.�



Campanale argued that Massachusetts boasts some of the best higher education institutions in the country, with highly ambitious and educated students from around the world flocking to attend them.



She added, �We need to give them the opportunity and incentive to stay in Massachusetts and help us boost our economy while they pursue their career. With this bill we have the opportunity to be a leader in alleviating the student loan debt crisis and set the standard for other states and our federal government to follow. We need to act quickly to make this legislation a reality.�