Congressman Charles B. Rangel introduced the Student Loan Interest Deduction (SLID) Act of 2013 to ease the burden posed by student loans and the debt they bring upon America's students. Rangel's bill would double tax reductions for student loan interest rates and eliminate income phase-outs.
"Student loan debt has become the number one form of debt that Americans currently have, totaling more than $1 trillion, more than credit card debt and auto loan debt by over $100 billion," said Rangel. "The costs of tuition are rising faster than American families can keep up with and high unemployment rates have inhibited students' capacity to pay it off after graduation creating a student loan debt crisis."
In response to the sharp rise of student loan debt in the past decade and the high delinquency rates Representative Rangel has introduced the SLID Act. This bill would increase the tax deduction for student loan interest rates from $2,500 to $5,000 for singles and $10,000 for married couples. It also eliminates the income phase-outs of $50,000 for individuals and $100,000 for married couples in the current deduction.
The current effort to lessen the burden of student loan debt has garnered the support of ten original co-sponsors - Reps. Grace Napolitano (D-CA), Bill Pascrell, Jr. (D-NJ), Jim McDermott (D-WA), Jared Polis (D-CO), Juan Vargas (D-CA), Raul Grijalva (D-AR), Yvette D. Clarke (D-NY), Ron Kind (D-WI), Madeleine Z. Bordallo (D-GU), and Keith Ellison (D-MI) - which reflects the wide range of support for this student tax cut.
Additionally, the SLID Act has received the endorsement of eight education trade organizations, indicating great enthusiasm for the bill from the education community. The endorsing organizations are the American Association of State Colleges and Universities, the American Council on Education, the Association of Jesuit Colleges and Universities, the Association of Public and Land-grant Universities, NASPA - Student Affairs Administrators in Higher Education, the National Association of Independent Colleges and Universities, and the National Association of Student Financial Aid Administrators.
"College graduates are becoming increasingly important for the economic future of the United States," said Rangel. "They are the ones responsible for maintaining the level of innovation that has made this country great, and the ones who will lead our nation into a new age. For this reason we should ensure that no student has to sign away their future salaries just so they can get a job and instead work to free them of debt so they can commit themselves to pushing America forward. This bill is a step in the right direction so that the American Dream remains within reach of our children."