Fixing the student loan debt crisis.

Fixing the student loan debt crisis.

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Craig Lenhausen started this petition to President Joseph R. Biden and

The student loan debt crisis is holding back generations. Many borrowers are delaying starting a family, owning a home, and even being held back in their professional careers. Solving the student loan debt crisis will spur economic activity and help our nation  further prosper. This petition acknowledges personal responsibility while still offering a comprehensive plan to the problem. The plan is simple, education should not be taxed in any way. How that looks is detailed below.

1. Permanently set interest rates to 0%. Generally our society pulls together to educate the next generation. We do this through government and taxes, but stop at higher education. If individuals must pay for their own education, the government should not tax them through interest on a loan that can't even be discharged through bankruptcy. 

2. Forgive only outstanding interest. This plan is about personal responsibility. While loan forgiveness is popular, it should be limited. This part of the plan is only included to correct the mistake congress made by setting interest rates so high in the first place. This plan is about paying back the money borrowed, but not any more. This part of the plan is not completely necessary, but recognizes accrued interest on a government loan to be a tax by the government on education. That tax should be eliminated.

3. 100% of student loan payments should be made with pre-taxed income. This is by far the most important part of the plan. The government fails to provide higher education and then further insults its people by taxing that same education by making borrowers pay back loans with post-taxed income. This plan calls for 100% of payments to be made with pre-taxed income. 100% of payments should not be subject to local, state, federal, or FICA tax. Any tax on education is inherently wrong as education benefits our entire society. That is why fixing the student loan debt crisis should be solved by the comprehensive tax cut described above.

4. Income based repayment plans. With taxes taken out of the cost of higher education, fair repayment plans  will need to be implemented. Repayment would be 10% for those making below the amounts below and 15% for those making above the amounts below. Single filers: $75,000. Head of Household: $100,000. Married filing jointly: $150,000. Additional payment would be allowed whenever. These payments would allow the average borrower (approximately $30,000 loan balance making about $60,000 a year) to be student loan debt free in 5 years with minimal impact to discretionary income. 

This plan is a comprehensive tax cut for student loan borrowers. Those seeking personal and societal improvement through education, should do so without the burden of tax on their education. We can solve the student loan debt crisis with this comprehensive tax cut. This petition only solves the current debt crisis. Although it makes no plan for the future costs of higher education, it recognizes that action is also needed to address the cost of higher education. Perhaps other individuals signing this petition can make a plan for that! 

0 have signed. Let’s get to 100!
At 100 signatures, this petition is more likely to be featured in recommendations!