Easing off student loans
United States Congressman David Wu, an Oregon representative, introduced legislation to the House of Representatives on Tuesday that aims to “alleviate the burden of student loan debt shouldered by many recent college graduates,” according to a press release from the congressman’s office.
The proposed changes will make the interest on student loans more like mortgage interest. Basically, the dollar cap and the income limit on the amount of student loan interest that can be deducted from income tax will be eliminated.
Currently, no more than $2,500 of student loan interest money is tax deductible, and any taxpayer with an income over $65,000 cannot deduct any student loan interest. There is no limit on interest or income that limits mortgage interest deductibility.
The Student Loan Interest Full Deductibility Act aims to make student loan interest more like mortgage interest. Basically, it would make student loan interest completely tax deductible.
In the press release, Wu stated, “We do a lot in this country to encourage home ownership, and we ought to provide the same incentives for families to send their children to college.”
Wu is a member of the House Education Committee and hopes to add this proposal, as well as the Student Loan Fairness Act, to the reauthorization of the Higher Education Act for future consideration by Congress.
– Sara Gundell