Bill would allow Oregonians to deduct student debt

For roughly 44 million debt-saddled college graduates across the nation, the federal government will whittle down their taxable incomes by amounts equal to whatever interest they paid on their student loans throughout the year, capped at $2,500 depending on income.

But when tax season comes around again next year, Oregon might forgive all that state residents paid toward student debt within the previous year -- down to every last penny of interest and principal, no caps or income limitations.

It's a new proposal being floated at the Oregon Legislature, where some lawmakers characterize it as an innovative approach to the nation's $1.2 trillion-outstanding student debt problem.

Senate Bill 1034 would expand the existing federal interest-only deduction for both standard and itemized tax returns to include principal, without caps or limits based on income, for the state's income taxing purposes. It would apply to any Oregonian with a federal or private-sector loan, as well as their parents, grandparents, employers or anyone else who helps out.

Read more: www.oregonlive.com/education/index.ssf/2017/03/bill_would_allow_oregonians_to.html