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 deductionLinks:
2 comments:
It's all just moving deck chairs on the Titanic....the student loan load is unmanageable as it is; playing with the interest rates won't get rid of that trillion-plus.
Amen to the commenter above!! We're a sinking ship!
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