Saturday, September 16, 2006
Gard touts higher education tax relief package at St. Norbert
DE PERE -- Today at St. Norbert College John Gard touted his tax relief plan for college student and grads. As a student in his fifth year, and with the federal loans adding up, any relief during repayment would be spectacular. At a discussion/press event today, he spelled out four main concepts
Increasing the Student Loan Interest Deduction -- ... if someone's modified adjusted gross income is $65,000 or less ... that person may deduct up to $2,500 of the interest paid on the student loans from their federal income tax. Gard proposes raising the limit to $5,000.
Making the Student Loan Forgiveness Plan Permanent -- The suspended rule allowing individuals to claim a tax deduction for the first 60 months of their loan repayment is set to expire in 2010 ... Gard proposes making the suspension permanent.
Increasing the Worker Re-Training and Higher Education Tax Credit -- Those who are currently paying for college tuition out-of-pocket may be eligible for a federal income tax credit of $2,000. This benefit applies to someone who is going back to school to re-train for a new job or is a first time college student. Gard proposes raising it to $3,000 and indexing it to inflation every year following.
Expanding Education Savings Accounts -- Parents, grandparents or students may deposit up to $2,000 a year into a Coverdell Education Savings Account tax-free. John Gard proposes increasing the maximum contribution to $5,000 and allowing a tax deduction of up to $5,000 for contributions to an ESA
Overall, his plans make a lot of sense. By giving tax credits in repayment, hard working students won't have to decide which bills to pay, and should repay their federal loans faster. Students who pay off their loans will most likely spend that money and put it back into the economy.
Kudos Gard Team! You guys nailed it on this one. When John gets elected, I hope he will move on this.
Labels: UW System
