Time to pound Iowa college social media

[robertwerden]

Only Rand Paul will let you deduct your student loans over your entire working career. Caucus for Rand. Don't buy into the free this and free that. Congress will never vote for anything crazy Bernie wants. Rand can instruct the IRS on day one to make your student loan debt tax deductible. VOTE RAND

[ds21089]

https://www.thunderclap.it/projects/36398-we-support-dr-rand-paul

If you haven't already signed up, please do so.

[rp08orbust]

I assume just the interest, not the principal, is tax deductible.

[idiom]

Technically this bothers me.

The reason the taxcode is a mess is because of shit like this.

I still like it though, in NZ its one of the only things you actually get a deduction for. Actually you set your tax code as MS (main income, student loan) instead of M and automagically your student loan payment gets deducted from your pay cheque with the deduction applied.

[RonPaulRules]

https://www.thunderclap.it/projects/36398-we-support-dr-rand-paul

If you haven't already signed up, please do so.

Reply to some of the comments on Rand's Facebook posts with the link to this Thunderclap!

[whoisjohngalt]

I assume just the interest, not the principal, is tax deductible.

No, the interest is already deductible. Rand is proposing to make the entirety of your loans tax deductible.

[ds21089]

Reply to some of the comments on Rand's Facebook posts with the link to this Thunderclap!

I've been doing this like crazy. Also, I've been leaving messages on Ben Carson's page.. not necessarily saying to jump shit from Carson to Paul, but instead linking Paul and Carson together by saying "we need humanitarian doctors, not more corrupt lawyer politicians. Carson/Paul, Paul/Carson" and it's been well received.

I have a feeling Carson's campaign will end soon and I want to have his supporters see Rand in a positive light and then jump over in support.

[rp08orbust]

No, the interest is already deductible. Rand is proposing to make the entirety of your loans tax deductible.

Well doesn't that create an incentive to get the biggest student loan you possibly can, regardless of whether you need it?

[robertwerden]

Well doesn't that create an incentive to get the biggest student loan you possibly can, regardless of whether you need it?

What? its not free money, ya still owe it back.

[rp08orbust]

What? its not free money, ya still owe it back.

The same could be said for all of the Federal Reserve's lending ;)

Let's say you borrow $100k you don't need at an annual interest rate of 4%.

At the end of the first year the amount you owe has grown to $104k. If you pay off $26k at the the end of the year, that's a $26k tax deduction, saving you possibly $8k in federal income and payroll taxes (and maybe more in state income taxes). So during the first year you have a net profit equal to the $8k in tax savings minus the $4k in interest, or $4k. Your loan is down to $78k.

At the end of the second year, your loan grows to $81,120. If you pay off another $26k, your profit for that year is the same ~$8k in tax savings minus the $3,120 lost in interest = $4,880.

You will continue to make profits off the loan until it is paid off.