Students paying college loans could see more tax savings from a student loan bill proposed by two state Democratic legislators than previously thought, according to a Wednesday release from the state’s Legislative Fiscal Bureau.
The bill, nicknamed the “Higher Ed, Lower Debt” bill, would allow students to deduct their loan payments from their income tax bills, according to a release from state Rep. Cory Mason, D-Racine, one of the bill’s authors. It would also allow students to refinance their loans at lower interest rates and would improve the tracking of student loan debt information.
Wednesday’s LFB report shows the portion that would allow students to deduct loan payments from tax bills could save students between $62 and $531 a year, depending on their loan amount and their given tax brackets. Married loan filers could save between $178 and $1,062, according to the LFB.
Mason said in the statement he plans to officially introduce the bill next week.
