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Allow the repayment of federal student loans using pre-tax dollars from pay checks (like retirement plans are funded)

Created by M.B. on May 06, 2013

Federal student loan debt is out of control and we must further stimulate the economy. Employees should be allowed to repay federal student loans using pre-tax money. Pre-tax money can already be used for retirement accounts, healthcare savings, and child care costs (to name a few). By allowing pre-tax federal student loan repayment, individuals can lower their tax liability and therefore have more money in their pockets to spend, thereby increasing consumer spending and creating more demand for goods/services (re: strengthen the economy). Since the government already gains the interest from federal student loans, it does not need to "double dip" and tax the money used to repay those loans. Any loss of tax money can be offset by the economic growth that will be created.

Budget & Taxes
Economy & Jobs
Education
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