I am petitioning for a panel to investigate the implications of updating the tax code to allow employees to allocate a percentage of their wages pretax to an account (similar to a Flex spending) which can be used to directly pay down their outstanding federal student loan debt, and to draft a law for the same
We currently have a system in place that allows employees, on a pretax basis, to allocate a portion of their salaries (up to a predetermined limit) for certain expenses, such as transit (TRIP, etc) or healthcare (FLEX spending account to use to pay against co-pays for healthcare visits, px drugs, etc). Why not set up a similar system, where by employees can allocate, for example, 10% of their wages pretax, to be used solely for the repayment of outstanding Federal student loans?