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Goodbye student loan interest deduction? How the GOP tax plan impacts you

From Pennlive.com

Several less scrutinized elements of the U.S. House GOP tax reform plan could seriously impact those paying for college or still paying down college loans, including the elimination of a popular student loan interest deduction.

That’s a particular concern for Pennsylvanians, considering that students here have  the second-highest amount of per student debt of any state in the nation.

Here’s a look at the proposed tax changes and what they mean for you.

Student loans and tuition assistance 

One of the most popular tax deductions in the crosshairs is one that allows people paying off student loans to deduct up to $2,500 in interest from their tax burden. According to the IRS, some 12.4 million people claimed the deduction in 2015, although in practice most taxpayers are able to claim far less than the full $2,500.

People whose employers contribute a portion of their higher education costs would see that money become taxable income under the GOP plan. A similar tax break for university employees and their families would also be jettisoned.

Republicans estimate that these measures would raise $47.5 billion over the next 10 years.

Read more.

PA Workforce Development Association