Neb. lawmaker: Make graduate loans tax-deductible

Jan 11, 2014

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.

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