re: Govt should incentivize student loan payback by allowing all payments to be deducted.

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My problem is because I make too much money,I can't deduct the interest on my loans yet the same liberal arts major can... why is that fair? Either make it where everyone can deduct or nobody can.

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^This right here. If you make a certain amount of money you cant deduct as much of your student loan interest. Why does the lazy asshat, not even trying to work as more than a barista, get to deduct 100% of their interest while I work my arse off and only get to deduct a much smaller portion.

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Knowing how government works, that's a terrible idea. 40 years from now, when those who "gave it up" don't have a pot to piss in because they didn't save properly, we'll be paying for them too.

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That would be their own problem. Most of these folks are taxpayers too, or do some of yall forget that?

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Look, student loans need to be revamped completely, but it needs to start before the loan is even awarded. Loans should be dischargeable in bankruptcy, but you'll also see rates skyrocket due to the unsecured nature of the debt. Loans shouldn't be subsidized by the government either. When you're paying 25%, perhaps people will be a bit more prudent with their financial decisions.

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Rates don't need to be 25% when I have three credit cards @ 12.5 APR right now.

Either way, you look at it again, the next generation of nation builders (which is the age group in the discussion) will be doing everything later in life.

without reading, at least 15 "I paid my debt so you should pay yours" posts

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You also realize back in the day before the government stepped in, banks allowed a co-signer with a credit rating to reduce the rate?

I can remember Nelnet's interest rate under 15%

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And they still could't be discharged in bankruptcy. If you want them to be treated like traditional loans, rates will be much worse.

To be clear, you can get a student loan discharged in bankruptcy, but the threshold for proving the hardship is incredibly difficult to prove.

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20yrs ago I was given far more student loan money than I needed to pay my tuition.

Know what I did with the extra? Spent it like a dumbass.

Know what else I did? Paid it all back as fast as I could when I graduated without complaint because that is what a god damn adult does.

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Same here.

Although I have to say that I think it's bullshite that the government profits on educating its populous. Government education loans should be charged only enough interest to cover the administration of the loan. Then require repayment via a percentage of wage garnishment, to ensure repayment, and we have a starting point to a solution I think. It's a similar approach to the way the federal and state governments loan money to smaller municipal entities. If you reduce the risk, you can reduce the fees/interest.

I think that student loans should be payable with pre-tax dollars. I do not think that is a huge ask, and it is commensurate with the treatment for 529 plans.

Specifically, parents can pay for their child's education with a 529 plan, which takes pre-tax dollars. That 529 plan gains interest. Conversely, I am required to pay my student loans - which I incurred for educational purposes - with post-tax dollars, and all the while those loans gain interest. I am not sure why wealthy parents are given an increased tax benefit over a person who is required to take out loans.

I am fine either way - either everyone pays with pre-tax dollars, or everyone pays with post-tax dollars - but I am not sure why it is treated differently?

Further, I think you could incentivize the insane amount of delinquent accounts with such an approach, especially if that money was routed directly from their employer.

Or, another option, tie the student loan interest deduction to a ratio between income and debt. It makes no sense to me that someone who makes under the threshold (who will likely take the standard deduction anyways) with a low income to debt ratio can deduct student loan interest, while someone with a higher income to debt ratio cannot.

Last, I pay my student loans every single month. I took on the obligation, I have to pay it off. I do not regret my decision. However, just as I pay my taxes, and wish I could pay less, I pay my student loans, and wish I could pay less.

You should not be allowed to receive degree of you don't have enough sense to take on debt you cannot repay due to poor choices.

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You shouldn’t have to be incentived to pay back your obligations

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Secured obligations have big incentives. Don't pay your note, lose your car...

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I think that student loans should be payable with pre-tax dollars. I do not think that is a huge ask, and it is commensurate with the treatment for 529 plans.

Specifically, parents can pay for their child's education with a 529 plan, which takes pre-tax dollars. That 529 plan gains interest. Conversely, I am required to pay my student loans - which I incurred for educational purposes - with post-tax dollars, and all the while those loans gain interest. I am not sure why wealthy parents are given an increased tax benefit over a person who is required to take out loans.

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Wrong. 529 contributions aren't deductible for federal taxes. The earnings aren't taxed if used for educational purposes. It's the same as taking a deduction for interest on student loans.

They may be deductible in some states for state tax purposes.

Surely you understand why the government wants to promote early saving rather than taking a loan, right?