Under the new tax reform bill, broke young people burdened with student debt will be paying even more. Yep, the plan proposes to eliminate the student loan interest deduction, which allows borrowers who make less than $80,000 to deduct up to $2,500 in interest payments on student loans from their tax bills. Compared to the status quo, this proposal effectively levies a student loan tax on interest payment.
About 12 million people claimed the student loan interest deduction in 2015. Costs for the government are growing as student loan balances grow, and so the House is trying to do away with the deduction to save $$. (Meanwhile, they’ve included significant tax breaks for the rich and corporations. #Priorities).
The student debt crisis is taking an insanely heavy toll on most young Americans, and we need more help, not less. Billionaires shouldn’t be getting big breaks while those who are burdened from getting educated will have it even harder. Tell your reps to oppose the proposed tax plan which eliminates the student loan interest deduction!