Within the United States, according to IRS records, there are forty-four million Americans with student loan debt. President Trump’s tax reform bill states that “special interest deductions” will be made in the areas of medical expenses, adoption and student loan interest rates. The Trump administrations alleged overall goal of the tax cut is to grow the economy by delivering more jobs, fairer taxes and larger paychecks to Americans; no matter their economic status, but the student loan deduction will only benefit low – middle class individuals supporting themselves.
In regards to student loan interest deduction, benefitting tax cuts only depend on the individuals income limit. As a single filer the individual income must not exceed $80,000 per year to even qualify for a deduction. If the single files between a income limit of $79,999 and $65,000, they may be subjected to partial deduction. That classification let alone only benefits low – middle class earning individuals. Secondly, the deduction only benefits those whom claimed themselves thought out the whole duration of their college career. Universities are finding this difficult for graduate students and their research. Trump’s tax reform will increase taxes on tuition making it more expensive for graduate students. Rutgers Student, Nicole Dykstra, suspect they’ll have to drop out if the bill passes. “The new proposal will be a sudden, unforecasted expense for us,” This tax reform will have a negative effect on valued graduate students that are conducting academic research. If graduate students drop out, there will be a reduction in valued academic research. Overall, the student loan deduction will only benefit low – middle class individuals supporting themselves, and a family throughout their collegiate career.