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re: It is criminal how you can't claim Student Loan interest on tax but can Mortgage

Posted on 8/24/24 at 11:09 pm to
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
139057 posts
Posted on 8/24/24 at 11:09 pm to
quote:

If you graduate people that can’t pay off their loans in 20 years, you’re not doing society a service.
Indeed.
If that is the median graduate status of result in a particular field, there should be institutional liability.
Posted by LRB1967
Tennessee
Member since Dec 2020
23173 posts
Posted on 8/24/24 at 11:12 pm to
You can't deduct credit card interest either but you don't seem to be crying about that.
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
139057 posts
Posted on 8/24/24 at 11:15 pm to
quote:

You can't deduct credit card interest either but you don't seem to be crying about that.

Does the US government profit from credit card interest?

Look.
The OP is not asking to be let out of any repayment obligation as far as I can tell. Instead, he's asking a very legitimate question as to why he should be taxed on interest paid to the government for student loans.
This post was edited on 8/24/24 at 11:20 pm
Posted by OceanMan
Member since Mar 2010
23222 posts
Posted on 8/25/24 at 8:32 am to
quote:

Instead, he's asking a very legitimate question as to why he should be taxed on interest paid to the government for student loans.


Again, the interest is deductible as an income adjustment, subject to income phaseouts.

In comparison to other deductions and credits, these phaseouts are incredibly common. I don’t see how pointing to the deduction of mortgage interest makes any sort of point. The “yeah buts” are actually very valid points.

The US government “profits” by me working more, but if I work too much, I don’t get a credit on my kids before/after/daycare. There is no need to go one by one through tax deductions, they aren’t designed to be particularly fair or equal, they are more designed to influence behaviors.

quote:

Does the US government profit from credit card interest?


I doubt it “profits” from student loan interest, especially not more than massive consumer spending on credit cards.
Posted by St Augustine
The Pauper of the Surf
Member since Mar 2006
72131 posts
Posted on 8/25/24 at 8:37 am to
I had 93k after grad school. At 6 percent which I consolidated down from 10.75 because my school didn’t take federal loans at the time.

Had a year of working just staying afloat before I married my wife. Once married we paid them off in 25 months. Amazing what happens when you make it your priority and live modestly.

Nobody wants to do that though.
Posted by Azkiger
Member since Nov 2016
28173 posts
Posted on 8/25/24 at 8:42 am to
quote:

Interesting commentary from the “all taxes are bad and that’s why I support tax free tips” crowd


Agreed, it's almost like they view tax deductions from government rubber stamp loans that they're on the hook for different from actual taxes paid on actual labor.
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