The “Pre-Tax Student Loan Repayment Act” proposes that federal student loan repayments be made with pre-tax dollars. In addition to providing borrowers financial benefit in utilizing pre-taxed dollars, this change would provide borrowers with significant financial relief by lowering their taxable income, thus reducing their overall tax burden. With an increased take-home pay, borrowers could more effectively manage their loans and accelerate repayment. This policy would not affect individuals who did not take out student loans, as the adjustment is specific to the borrowers themselves. By reducing the financial strain on borrowers, this policy would promote greater economic mobility and provide long-term fiscal stability for millions of Americans.
Better idea (IMHO): Massively overhaul higher education. The current system is based on antiquated medieval universities. Cyberspace creates abundant learning opportunities. Do we really need these huge campuses, faculty–many of whom push the Communist/Socialist agenda, etc.
We need create a better way of educating our young learners before we can address student loan repayment strategies.
Completely agree! There are many contributors to the problem. One angle at addressing is helping in a reasonable manner those who are already saddled with student loan debt, and another is to also prevent these astronomical costs from incurring in the first place.
(Speaking from someone who had over $300k in student loan debt, now down to about $100k, all while paying $5k monthly)
I had the same idea and posted it under Education. See the link here:
Pre-Tax Student Loan Repayment