Imagine a world in which the standard benefit package at workincludes health insurance, 401(k) contributions, and a few thousanddollars to pay off your student debt.

More companies than ever are offering that lastperk, but it's still a fringe benefit. Two billsmaking their way through Congress could change that, by givingcompanies a tax incentive to help employees repay their studentloans.

At the moment, when employees get money to pay off theirstudent debt, it counts as taxable income, like a salary bump,just for debt payments. Unlike money that goes toward a401(k), both employees and employers have to pay taxes on thebenefit. For many businesses, it costs more than it'sworth. "I think the tax treatment now is a detriment to morecompanies adopting this," said Rob Lavet, general counselfor SoFi, a nonbank lender,which works with around 400 employers thatgive employees loan refinancing reductions.

The bills proposed in the U.S. Senate and House ofRepresentatives aim to take away that hurdle by expandinga section of the tax code. The new policy would treat up to$5,250 per year in employer contributions toward student debt asnontaxable income, a change could make the student debtbenefit go from a niche offering to one that's more common thanparental leave.

"Student loan repayment would be a very attractive benefit thatemployers could offer," said Kathleen Coulombe, a governmentaffairs adviser at the Society for Human Resource Management, anindustry group that worked with representatives on the bill.As of 2015, only 3 percent of companies surveyed bySHRM put money toward their employees' student debt, but this year,there's a boomlet ofcompanies offering the benefit.

Just this week, Fidelity announced it wouldput up $2,000 a year and up to $10,000 in total toward studentdebt. While hundreds of companies are reportedly liningup to chip away at their employees' student debt, it'smostly organizations that hire a lot of young people right outof college, such as PriceWaterhouseCoopers,that use it as a recruitment tool. "We anticipate that thatnumber would definitely go up, should it be covered in section127," said Coulombe, referring to the section of the tax codethe proposed bills are looking to adjust.

The 401(k) didn't exist before 1980, when Ted Benna, the"father" of the 401(k), took advantage of the tax code. Bennastarted the first 401(k) program at his own company, theJohnson Cos. It caught on even more than he expected. "I wascertainly not anticipating that it would be the primary way peoplewould be accumulating money for retirement 30-plus yearslater," hetoldWorkforce magazine in 2012. Now 90 percent ofcompanies offer their employees a 401(k) plan, and about 75percent of companies match employee contributions. It's possiblethat the same thing could happen with student debt.

It's certainly a benefit young people want. One survey found 80percent of those surveyed want to work for a company that helps payoff student debt. Many young people prioritize payingoff debt over saving for retirement, because the average debtburden for U.S. college graduates who take out loans is a$30,000 monster. "I've been in the workforce for 15 years, andI still have student loans," said Coulombe. Companies offeringthe student debt benefit say it will help employees start puttingaway for retirement earlier. One survey found thatjust a couple of hundreddollars a month can save debt holders thousands of dollarsin interest. The legislation could inspire employers to pony upeven more than that to hit the $5,250-per-yearceiling.

The bill's backers are "cautiously optimistic," said SHRM'sCoulombe. They don't expect the bill to pass during anelection year, but it has bipartisan support. The benefit will, intheory, reduce defaults, which will offset some of the loss of taxrevenue, the bill's supporters argue. "We're looking at this as alonger-term solution," said Ashley Phelps, the communicationsdirector for Representative Rodney Davis (R-Ill.), whointroduced the legislation. "If you don't have this debt, then youdon't have as many at-risk borrowers that could default ontheir student loans."

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