John Edgar For Colorado's 5th

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Assistance Program for Student Loan and Starter Home Down Payment (APSLASHD)

Proposed by: John Edgar, Candidate for United States House of Representatives, Colorado’s 5th Congressional District

Section 1: Title

This legislation shall be known as the Assistance Program for Student Loan and Starter Home Down Payment (APSLASHD).

Section 2: Purpose

The purpose of the APSLASHD is to establish a savings program akin to a Health Savings Account (HSA), enabling Americans to save for a down payment on a home or receive assistance in paying down student loans, or a combination thereof. Participants may contribute to this program voluntarily.  Contributions can also be earned through rental payment credits, employment in national interest fields, and employer contributions. Participants will benefit from the added federal interest accrual on their contributions.

Section 3: Eligibility

All American citizens are eligible to participate in the APSLASHD program, subject to the conditions outlined in this legislation. Participants must meet eligibility criteria set forth by the APSLASHD governing body.

Section 4: Funding Mechanisms

  1. Rental Payment Credits: Participants who are renters of their primary residence shall receive a 15% credit of the amount paid in rent, which shall be deposited into their APSLASHD account. These credits can be utilized towards student loan paydown or applied as a down payment on a Federal Housing Administration (FHA) loan.
  2. Employment in National Interest Fields: Participants employed in fields deemed to be of significant national interest, such as teaching or other support in public school settings, armed services, peer recovery or related social work, police, fire, and others as determined, shall receive deposits equal to 10% of their gross annual W2 income into their APSLASHD account as outlined by the governing body.

Section 5: Participant Contributions and Interest

  1. Participant Contributions: Participants may voluntarily contribute their own funds to the APSLASHD account, separate from credits received through rental payments or employment options.
  2. Employer Contributions: Participants may receive employer contributions to their APSLASHD account. Employers may match up to $10,000 per year for each participating employee. These employer contributions shall be tax-deductible for the employer and tax-free for the employee. However, employer contributions cannot exceed employee contributions.
  3. Interest Accrual: The federal government shall provide an annual interest rate based on the Overnight Federal Funds Rate plus 3% on participant contributions to the APSLASHD account, including both participant and employer contributions. Interest shall accrue annually on participant contributions.
  4. Transfer to IRA: Participant contributions, employer contributions, along with accrued interest, may be transferred to an Individual Retirement Account (IRA) if the participant chooses not to utilize the APSLASHD funds for student loan paydown or housing assistance. Only participant and employer-contributed funds and accrued interest at the specified rate are eligible for transfer.
  5. Non-Transferrable Credits: Credits deposited into the APSLASHD account through rental payments are not eligible for transfer to an IRA and must be used for their intended purposes or will be forfeited.

Section 6: Program Administration

The APSLASHD program shall be administered by a governing body appointed by the relevant federal authority. This body shall oversee program implementation, eligibility verification, fund management, and any necessary regulatory measures.

Section 7: Implementation

This legislation shall take effect immediately upon passage and shall be implemented within 180 days.

Section 8: Funding

Funding for the APSLASHD program shall be allocated from the federal budget as deemed necessary by Congress.

Section 9: Review and Amendments

The APSLASHD program shall undergo periodic review by the governing body to assess its effectiveness and may be amended as needed to address changing circumstances or emerging needs.

Section 10: Sunset Clause

This legislation shall remain in effect until December 31, 2035, unless extended or modified by subsequent legislation.

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