Under the current internal revenue code, taxpayers are entitled to a deduction for student loan interest up to $2,500. The deduction phases out when a taxpayers adjusted gross income reaches a certain threshold.
Over the past few decades tuition costs have increased far more than the rate of inflation. As a result many students' cost of post-secondary education have increased, resulting in larger loans and thus larger interest charges.
Taxpayers who were former college or graduate students are in desperate need of an increase in the student loan interest deduction currently permitted under the Code. Though raising the permissible deduction would invariably result in less revenue to the Treasury, much of this would be offset by increased spending by these taxpayers.