End federal and state income tax on wages, retirement funds, social security or any other income when it is used to repay education loans.
Why is this important?
To incentivize education loan repayment, taxpayers should not have to pay federal or state income tax on wages, retirement funds, social security, or other income when it is used to repay education loan debt. The volume of education loan is soaring, the loan rates are extremely high relative to rates paid for savings, and the middle class--young and old -- is saddled with education loan debt. We need a mechanism like 529 plans that will make it easy to move money from wages, retirement funds, social security or other income into tax-free accounts that can be used to repay student and Parent Plus loans.
