Rising student debt (over $1.2 trillion) represents a real and present threat to our economy, reducing the ability of working-class Americans to buy cars, homes, or even switch jobs. A simple step toward curbing this crisis would be to make interest paid on student loans fully tax-deductible. Currently, the max deduction for student loan interest is only $2,500/year, and phases-out as you earn over $60,000. Homeowners, however, receive full deduction of interest on home loans up to $1 million, with no income cap.
Politicians should stand behind their claimed support for education by saying that an investment in higher education is at least as important to society as an investment in a home. Remove the $2,500 deduction max and income cap, and make student loan interest fully deductible.