Stop taxing students
Synopsis: Treat Paying for Education Like Retirement Savings
Paying for education shouldn’t be as hard as it is. Student loans started as a way of making education accessible to students and families. The student loan program has become a barrier to educational achievement.
Student loans have ballooned to become the second highest consumer debt in America - behind only mortgage debt. It is now higher than both auto loans and credit cards. “There are more than 44 million borrowers with $1.3 trillion in student loan debt in the U.S.”
If we are not going to fully fund education, we need to make paying for it easier. My plan is to allow the unlimited deduction of federal student loan principal and interest payment from income tax.
People would still be responsible for all principal and interest payments, but the federal government would not tax income used for an educational purpose.