IRS Form 1040 limits the amount paid in interest to qualifying student loan lenders to a maximum of $2,500. This petition aims to persuade the Obama Administration to eliminate the limit and instead allow citizens to deduct 100% of the interest paid to student loan lenders over the course of the tax year.
Research shows that Americans owe more than $1 trillion in student loan debt, and that this burden affects the less affluent to a greater extent because student loans are usually the only way to finance a college education. Eliminating the $2,500 limit would leave people with more money to spend, thereby creating an economic stimulus; and it would be consistent with the public positions of this Administration on the value of a college education and helping the middle class.