Who needs you anyway. On November 2, 2017 House Republicans unveiled their proposed tax bill reform. One of the proposed cuts is the student loan deduction. For recent graduates entering the “real world,” already buried in debt, it seems unfair to remove the deduction they might be banking on, but the removal isn’t as serious as it sounds. For borrowers who claim it, the student loan interest deduction doesn’t amount to much anyway. The problem is in the diminishing value over time; as students pay back more of their loan over time, the amount of interest they’re paying is shrinking. The longer the debt is being paid, the less the payments go towards interest, and this leads to smaller deductions. Moreover, the deduction allows borrowers to deduct up to $2,500 in qualifying interest if they meet the necessary criteria, but even for someone in the 25 percent tax bracket that only amounts to a $625 tax break. Merely a drop in the bucket for recent graduates with upwards of $40,000 in debt, and most borrowers see even less of a break. By: Emily Crueger
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