Re:The college debt crisis is worse than it seems
by the_watcher on Monday May 23, 2016 @03:42PM
(#11756318)
Tuition is only deductible up to $4000 per year. Which would be reasonable if that were remotely close to what any college (outside of a few notable, laudable exceptions) are charging.
This used to be easy to answer. The first is a university and the second is a trade school or apprenticeship. However, the latter has fallen out of favor (for some reason?), and universities are having to pick up both roles. I don't think this is the right answer, but it's the only one that seems to have political / financial support. Interestingly, software rediscovered "trade school light" in the form of coding bootcamps.
> If lawmakers wanted to help the student debt crisis, a great start would be making student loan payments tax-deductible ... instead of just having student loan interest be tax-deductible.
Tuition is deductible. So you effectively deduct the principle payments the year you pay tuition. It makes perfect sense for only the interest to be deductible the second time around.