I am upset that I have to pay income taxes on the money I use to pay my federal student loans when people who can save for college before hand get to save up to $4,000 a year pre-tax. The reason I am upset is because of the effective cost of borrowing money for college when you calculate having to pay income taxes first.
For instance, my APR is 4.75% but the amount of taxes I pay for is about 21%. Add those together for the year and what you end up with is $1,300 paying off principle and $2,011 going to interest and taxes. When it's all said and done I would have paid nearly $90,000 for a college education which initially cost $30,000.
By allowing for principle payment write-offs, we will stop discriminating against debtors and this will put more money back into the system for lending.