Well, it is about companies’ assistance in reducing employees” student loan burden.  Is this a good thing? Definitely yes.  Why?  One reason is to minimize employees turn-over. Two, It reduces their corporate taxes. Recently Congress is working on a bill which allows employers to treat the assistance as companies’ expenses. In addition, the recipient employees will not be taxed from receiving the assistance up to $5,250.00 annually. Three, to generate positive multiplier effects which may, in turn, to increase the society’s purchasing power or aggregate demand, including but not limited to the firm’s own products.  Fourth, to foster the country’s economics growth.

There is no negative effect financially to the companies if they help paying for their employees’ student loans. This small amount of money will not have significant impacts on their bottom-line, but it surely will on the employees’ wealth-being, at least financially.  This idea seems pretty unusual, yet some companies have helped their employees to pay their loans.  It may be one of the viable solutions which may help reducing skyrocketed student loans growth in the US.  So far, the public does not see that the lawmakers will be successful or have a serious interest to solve the root of the problems.  It is too messy, time consuming, too many lobbyists, tiring efforts, and too many conflicting interests.  Therefore, invisible hand of Adam Smith’s is still needed for it works free from self-interests.