Every year, thousands of young people in the US pay large sums of money in repayment for their education debt. Only a small fraction of the repayment of principal and interest is tax deductible.
We would propose that President Obama support an initiative to make 100% of education loan repayments tax deductible.
This would return funds to the most heavily burdened and most heavily educated students from the least privileged background. It would also encourage responsible repayment.
In effect, it would be a highly targeted improvement in the economy toward those who need it most--young, underprivileged, highly motivated people.