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Then, as someone who is a renter and does not have student loans, I would miss out on two tax breaks. I think a more elegant solution is to get rid of interest

by jartelt 10y ago

Then, as someone who is a renter and does not have student loans, I would miss out on two tax breaks. I think a more elegant solution is to get rid of interest deductions for home owners. When you take out a loan, I think you should pay the real price for that loan.

davewritescode 10y ago
The student loan deduction phases out somewhere ~70k a year in income. A lot of first year engineering grads will never get to deduct a cent of student loan interest. Also, getting rid of the mortgage deduction would be a major hardship on the middle class.
wtvanhest 10y ago
Just out of curiosity, did you attend school? If so, how exactly did you pay for it?
- jartelt 10y ago
  I got BS from a public school. I paid for school via a mix of working ~10 hours a week throughout the school year, applying for local scholarships, doing a paid internship every summer, living in a cheap apartment, and then getting some loans. Since my tuition was only ~$10,000 a year and I graduated in 4 years, the overall amount of loans needed were not huge and could be paid off relatively quickly.
  - wtvanhest 10y ago
    I did a similar thing for undergrad and graduated with no debt. After working a few years went back for a grad degree which is how I accumulated some grad debt. Luckily I am doing fine and will have it paid off relatively quickly. My issue is more with the structural disadvantages we are creating for others and I think creating a system that is fair for both types of borrowers, home loan borrowers and student loan borrowers makes sense. I would even consider allowing the write-off of discretionary interest like car loan interest. It should likely be capped at some value that allows people to buy a new, but not ridiculous car. (I don't own a car so this is especially not something I care about). Point is, if home buyers are writing off their interest, people who are investing in themselves definitely should. I also agree with your elegant solution, and would support no write-offs, but I believe it is harder to take away write-offs than to add them.

by jartelt 10y ago

davewritescode 10y ago

The student loan deduction phases out somewhere ~70k a year in income. A lot of first year engineering grads will never get to deduct a cent of student loan interest. Also, getting rid of the mortgage deduction would be a major hardship on the middle class.

wtvanhest 10y ago

Just out of curiosity, did you attend school? If so, how exactly did you pay for it?

jartelt 10y ago
I got BS from a public school. I paid for school via a mix of working ~10 hours a week throughout the school year, applying for local scholarships, doing a paid internship every summer, living in a cheap apartment, and then getting some loans. Since my tuition was only ~$10,000 a year and I graduated in 4 years, the overall amount of loans needed were not huge and could be paid off relatively quickly.
- wtvanhest 10y ago
  I did a similar thing for undergrad and graduated with no debt. After working a few years went back for a grad degree which is how I accumulated some grad debt. Luckily I am doing fine and will have it paid off relatively quickly. My issue is more with the structural disadvantages we are creating for others and I think creating a system that is fair for both types of borrowers, home loan borrowers and student loan borrowers makes sense. I would even consider allowing the write-off of discretionary interest like car loan interest. It should likely be capped at some value that allows people to buy a new, but not ridiculous car. (I don't own a car so this is especially not something I care about). Point is, if home buyers are writing off their interest, people who are investing in themselves definitely should. I also agree with your elegant solution, and would support no write-offs, but I believe it is harder to take away write-offs than to add them.