Tax Consequences Faced By Students

Dana Lime, over at NerdWallet, just published a study on the tax consequences faced by students as a result of the Senate's new bill on student loans. This study is worth sharing with all of you.

The Nerdwallet study found, according to Lime the following: 

• [First], while the Senate has approved lower rates on student loans at 3.86% for the next few years, on average students will lose 25% of their higher loan costs in taxes because the IRS currently limits student interest deductions to $2,500 a year. This limitation is even more egregious for future students borrowing at higher rates linked to the 10 yr treasury note.
  

NerdWallet's [Other] Key Findings:

• A student who borrows at 3.86% will lose $530 in lost tax benefits over 10 years because of IRS interest deduction limits
• A $500 increase in the limit could collectively save students up to $950 million over 10 years
• Current IRS rules hurt future students who will pay more interest than current students
• IRS income restrictions penalize higher income grads who are ineligible for the deduction
  
  
  
  
  Links: 
  
  
  • How Students Can Save on Taxes Under Senate's Proposed Student Loan Rates
  • Who is NerdWallet
     
   
  
   

URGENT: Seeking Testimonials from Recent Graduates in New York, Kentucky, or North Carolina

If you are a recent graduate who resides in NYC, near Lexington, Kentucky or Chapel Hill, North Carolina and are in an extremely difficult situation as a result of your student loan debt, please reach out by email for interviews (ccrynjohannsen AT gmail DOT com).

Huff Post Live: What's Wrong With Congress? The Student Loan Debt Crisis Interview

Last night, I was interviewed on Huff Post Live to discuss the student interest rate debacle. My primary goal, however, was to focus on the real issue at hand: the student lending crisis.

If you missed it last night, you can view it here now.

Thanks for your continued support. Please consider donating. AEM counts on every penny to survive.



Also, thanks to Peter Rothberg at The Nation for reposting the video and mentioning my work as an expert on student loan debt!

Student Loan Interest Rate Debacle: Huff Post Live - 845 EST (July 10th)

Tune in to Huff Post Live at 915 PM EST to hear me talk about the recent fall out with student loan interest rates. http://live.huffingtonpost.com/r/segment/congress-conflicts/51daf8bf78c90a06670000cb

Personal Note for the Collective

On any given day, at any given moment, you might believe that freedom and the opportunity to change your path is impossible. You might have yourself convinced, especially with those who seek to hurt you, that you are incapable of overcoming huge obstacles that not only hold you back but are destroying the well-being of your identity and mental health. These beliefs should be disregarded at the personal and collective level. Your freedom is within reach - but you must take the initiative to seize it. This year has been a long, arduous journey. But on a personal note, I have lost close to 100 pounds, sold a book, moved across country (plus zigzagged back again), and also found clarity of mind. These are all elements of a new found sense of freedom, and all of these things have enabled me to become a stronger advocate for the indentured educated class. Onward!!!

 

Read my latest piece: "Homesickness and the War on Terror" at Spare Change News