Ball State University

Republican tax bill would kill deductibility of student loan interest

Republican tax bill would kill deductibility of student loan interest

The tax deduction for student loan interest would be eliminated as part of the sweeping tax changes proposed by House Republicans on Thursday.

The changes also call for levying a 1.4% tax on the investment income earned by private colleges and universities that have sizable endowments, which would appear to include USC. The tax would not apply to state schools.

More than 12 million Americans deducted student loan interest on their tax returns in 2015, the most recent year available, according to Internal Revenue Service data.

Under current rules, borrowers each year can deduct up to $2,500 of interest paid on qualifying federal and private student loans.

The...

EDITION: California | U.S. & World
50°