Student Loan: Millions of Americans Will Benefit from the New Federal Law

A new federal law signed last month will benefit millions of Americans who owe student loans.

Student Loans

Millions of Americans have been greatly affected during the pandemic and the number of students who applied for student loans increased. It is estimated that nearly 43 million owe a combined $1.8 trillion in student loans.

In a published article in FORBES, a new federal law signed last month will help ease the burden of the borrowers. It is indicated that employers can allow employees to use a percentage of their earnings to pay their student loans.

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First Company that Offers Student Loan Debt Relief

The Internal Revenue Service allowed Abbott to offer student loan debt relief. It is the first company that offered the program to its employees and more than 2,200 employees enrolled, according to a published report in WBBJTV.

Diego Martinez, Divisional Vice President for Corporate Benefits and Wellness at Abbott, said, “With this new feature, basically, allows employees to continue to pay their loans and the companies will recognize those payments and will be able to match it with the 401K. It’s a great opportunity for those who are not participating today. It means they can start saving for retirement earlier.”

He also added that this will be offered and available for all companies in the upcoming years. He continued, “This will become available starting in 2024. Actually, it works out well, because you need to work behind the scenes, the operation side of things and communication and education to employees is important as well.”

Furthermore, this will new federal law will help borrowers to end up choosing between saving for retirement or paying student loans.

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