Student Debt needs a long term fix and not a one time pay down or band aid. Taxes 4 Tuition would help Americans pay back Federal Student loans and provide a a solution to make higher education more accessible and affordable. This policy would have…
- The government should apply 100% of a students Federal Taxes paid post graduation to pay student debt until any federal loans are fully repaid. This insures a student is working post graduation. The more he/she earns the quicker the debt is paid and the government can begin earning the tax rev. This should apply to current loans and future loans for college, training or trade schools.
- Colleges should be incented with federal funds based on post graduation student loan repayment. The quicker a colleges’ students repay their loans the more they are able to receive in federal funding. Colleges are thus incented to focus degree programs and coursework on degrees that drive employment and higher wages and have a direct stake in student earnings.
- Companies should be incented to contribute $$ to help repay student loans quicker. These companies should be given tax benefits and or preferential treatment in gov contracts or grants.
- States should be incented in the same ways as companies for applying State Taxes to student loan repayment. This will also help states to retain or bring talent into their state.