Deducting Student Loan Interest

At Joe's Journal, he writes that the federal government should raise the amount of student loan interest that can be deducted from the current amount of $2500 to $5000 or more.

One way to mitigate this problem is allowing Borrowers to deduct the entire amount of their student loan interest.

We agree that students should be able to deduct the full amount of student loan interest paid, and we also realize that this should be a first step of many more.

If the relative repayments of a borrower are lowered through a higher tax deduction, lenders will simply make more money available, which will drive up college prices more, which will put the student ultimately in a worse position.

We think the full amount of student loan interest should be deducted, as Joe proposes. Furthermore, we think there should be a seven year cap on the repayment obligation of a student loan, whether federal or private.