Neb. lawmaker: Make graduate loans tax-deductible
LINCOLN, Neb. (AP) — A legislative panel will consider a bill this year that would make college loans for graduate degrees tax-deductible in Nebraska.
Senator Paul Schumacher introduced a measure Friday that would allow taxpayers to deduct the principal paid on loans used to obtain a graduate degree. The deduction would only apply for the first 10 years after a resident had earned the degree.
Schumacher says he proposed the bill after talking with a young woman who grew up in Nebraska, earned a law degree out-of-state, and returned with about $100,000 in student debt.
He argues that a similar deduction was given to Nebraska's state-sponsored college savings plan, but that plan assumes that parents and grandparents have enough money to save ahead of time.
The bill is LB787.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.