Student loan | Rep. Virginia Foxx: The Student Loan Debt Solution Is All About ...

Student loan | Rep. Virginia Foxx: The <b>Student Loan</b> Debt Solution Is All About <b>...</b>

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• Rep. Virginia Foxx: The <b>Student Loan</b> Debt Solution Is All About <b>...</b>
• <b>Student loan</b> debt is exploding. It has grown so much and so fast that <b>...</b>
• What is a 1098-E: <b>Student Loan</b> Interest - TurboTax® Tax Tips <b>...</b> - Intuit

Rep. Virginia Foxx: The <b>Student Loan</b> Debt Solution Is All About <b>...</b> Posted: 08 Sep 2014 09:01 PM PDT Many college graduates are delaying some of life's most important decisions – including starting a family and buying a home – because they face a pile of debt with no job prospects.  A record number of young adults live with their parents and roughly half of college graduates under the age of 26 rely on mom and dad for financial help. President Obama wants people to believe that shaving a few dollars off monthly student loan payments will solve the problems plaguing graduates. That's the essence of a proposal being touted on the campaign trail that would raise taxes and allow some graduates to refinance federal student loans. Let's be honest: This scheme is more about helping politicians survive an election than helping graduates survive the Obama economy. Sadly this is not the first time young Americans have been used as pawns in political messaging. In the summer of 2013, interest rates on most federal student loans were set to double. The president included a long-term, market-based solution in his budget proposal and urged Congress to pass it to prevent an interest rate spike. [How to Pay for College Without Building a Mountain of Debt] The Republican-led House passed a bill mirroring the president's request. Yet the Obama administration rejected it and the Senate refused to back it, demanding instead a short-term fix. Why the flip-flop? According to one press report, Democrats hoped to kick the can down the road to "rally younger voters to the polls" in the 2014 elections. Fortunately, a long-term solution became law. We averted an interest rate spike and provided students and families more certainty. We did the right thing by taking the threat of an interest rate hike off the table, leading to some politicians' current search for another election-year gambit to rally voters. This political gambit fails to address the core of the problem: graduates entering a job market that lacks good-paying jobs. No monthly payment is affordable if you are underemployed or out of work. [Eric Cantor: 'Let's Restore Hourly Wages Cut By Obamacare'] The best way to help young Americans with debt burdens is to get our economy moving again – precisely what House Republicans are trying to do. The House has advanced more than 40 jobs bills, many with bipartisan support, that would open new doors of opportunity for struggling graduates. Yet all of these bills are collecting dust in the Senate. Sen. Harry Reid (D-Nev.) may not agree with every detail of every bill, but that is no excuse for his total inaction. Recently, Congress did come together to pass a bipartisan fix for our broken workforce development system. We got the job done because the House acted, the Senate came to the table, and the administration got out of the way. Now we have a reformed law that will help put people back to work. Our nation desperately needs more bipartisan successes like this. Job creation will remain the House's number one priority until every graduate and struggling worker who needs a job can find one. Meanwhile, we are also taking steps to strengthen higher education for current and future graduates. If we enact a series of commonsense reforms, the federal government can help more Americans turn the dream of a college degree into reality. For starters, Washington should encourage more innovation, such as competency-based education, so students can earn a degree at a faster pace and lower cost. [How Long Will You Be Paying Your Student Loans?] Federal policymakers should empower students and families to make smart decisions by enhancing financial counseling and delivering better information to students looking for the right college or university. We should improve federal student aid. Many students take out loans when other financial assistance is available. It is time to streamline the confusing maze of aid and grant programs, and make it easier for students and families to apply for help. Congress should also strengthen the options available for students to repay their loans. The current system encourages students to borrow more than they need and can afford. We should pursue policies that ensure low-income individuals get the help they need, while also protecting taxpayer dollars. The House has already passed legislation addressing some of these issues, often with overwhelming bipartisan support. These efforts would make a real difference in the lives of students and they deserve consideration in the Senate. Life after graduation should be filled with hope and excitement. For far too many, it's become a time of hopelessness and anxiety. Countless college graduates are struggling because of the president's failed economic and education policies.  Let's stop treating young adults as political pawns and start working together to ensure they can build the future they deserve. Read Sen. Elizabeth Warren's op/ed on the student loan bill hitting the Senate floor this week. This story is an Op/Ed contribution to Credit.com and does not necessarily represent the views of the company or its affiliates. More on Student Loans: How Student Loans Can Impact Your Credit Can You Get Your Student Loans Forgiven? A Credit Guide for College Graduates Image: Photodisc Sign up for our weekly newsletter. Get the latest tips & advice from our team of 30+ credit & money experts, delivered to you via email each week. Sign up now. Congresswoman Virginia Foxx is currently in her fifth term as the Representative of North Carolina's 5th Congressional District and is the elected Republican Conference Secretary. Dr. Foxx is the chair of the House Education & the Workforce Subcommittee on Higher Education and serves as Vice Chair of the House Rules Committee.

<b>Student loan</b> debt is exploding. It has grown so much and so fast that <b>...</b> Posted: 14 Sep 2014 09:24 AM PDT Student loan debt is exploding. It has grown so much and so fast that it not only crushes millions of young people, but it also has started to weigh down our entire economy. Total nationwide student debt now stands at $1.2 trillion, more than the total credit card debt owed by everyone in America. In the coming days, the Senate is expected to vote on the Bank on Students Emergency Loan Refinancing Act, which would help ease this debt burden for millions of borrowers by cutting the interest rates on existing student loans. Earlier this summer, a large majority – 58 senators, including every Democrat, every Independent and three Republicans – were ready to take up the bill, but Republicans filibustered it, refusing to even debate the legislation. We may have lost that vote, but we're not ready to give up. More than 750,000 people have signed petitions in support of student loan refinancing, and momentum continues to grow. Every Democrat, every Independent, and even three Republicans were willing to advance the Bank on Students Act because they recognized that we are facing a crisis. Federal agencies like the Federal Reserve, the Treasury Department and the Consumer Financial Protection Bureau are already sounding the alarm. Student debt is keeping borrowers from buying homes, moving out on their own, buying cars and opening small businesses. It's keeping them from making the purchases that will help our economy grow.  With interest rates near historic lows, homeowners, businesses and even local governments have refinanced their debts. But a graduate who took out an unsubsidized loan before July 1 of last year is locked into an interest rate of nearly 7%. Older loans run 8-9% and even higher. These higher interest rates are producing billions of dollars in profits for the government. According to the Government Accountability Office, just one slice of the loans – those from 2007 to 2012 – will produce $66 billion in profits. Our bill lowers the rate to 3.86% for undergraduate loans and a little higher for graduate and parent loans. These new rates are exactly the rates nearly every Republican in the House and the Senate voted for just last year as the fair rate for new student loans issued in the 2013-2014 school year. If these lower rates are good enough for new borrowers, they should be good enough for the older borrowers, too. Instead of running up the deficit, we propose to offset the lost profits from the higher student loans rates. By stitching up a loophole in our tax code that allows some millionaires to pay a lower tax rate than middle-class families, we can reduce loan rates for our kids and make sure that the wealthiest among us pay their fair share. In fact, closing these loopholes will fully cover the cost of refinancing student loans and will reduce the federal deficit by about $14 billion, according to the Congressional Budget Office.  This legislation doesn't solve every problem that we have in higher education. We need to bring down the cost of college, and we need more accountability for how schools spend federal dollars. But the need for more reforms shouldn't stop us from doing what we can to help the 40 million Americans with existing student loan debt right now. Read More:http://www.marketwatch.com/story/sen-elizabeth-warren-on-the-vote-that-could-cut-your-student-loan-bills-2014-09-09

What is a 1098-E: <b>Student Loan</b> Interest - TurboTax® Tax Tips <b>...</b> - Intuit Posted: 08 Apr 2014 12:00 AM PDT Updated for Tax Year: 2013 If you're currently paying off a student loan, you may get Form 1098-E in the mail from each of your lenders. Your lenders have to report how much interest you pay annually. Student loan interest can be deductible on federal tax returns, but receiving a 1098-E doesn't always mean you're eligible to take the deduction. What Form 1098-E tells you Your lenders are required to send you Form 1098-E only if you paid at least $600 in interest during the year. If you have several student loans with the same lender, the financial institution applies the $600 threshold amount to the total interest paid on all of your loans; you may get a separate Form 1098-E for each loan, though. The amount you see in box 1 reflects your total interest payments for the year. When to deduct student loan interest The student loan interest deduction is taken as an adjustment when calculating your adjusted gross income, or AGI. This means you don't have to itemize your deductions to take it. To qualify, the interest payments you make during the year must be on a student loan that you took out to put yourself, your dependents or spouse through school. If you're married filing separately, or if your modified adjusted gross income, or MAGI, is $75,000 or more, you can't deduct any student loan interest. Your MAGI is essentially your total income minus the other adjustments you take, except for the tuition, student loan and domestic production activities deductions. When you use TurboTax to prepare and file your taxes, you don't need to do any of these calculations on your own. We'll ask you questions in plain English, handle all the calculations, and put all of your answers on the appropriate tax forms. How much interest is deductible If you're eligible to deduct student loan interest, TurboTax will put your information into Form 1040 to write it off. Have your 1098-E forms available when preparing your return to determine your total student loan interest paid. You can also add student loan interest payments you made that aren't reported on Form 1098-E to this total as long as the interest is paid on a qualified loan. Regardless of how much interest you paid, the maximum you can deduct is $2,500. When Box 2 is checked If Box 2 of Form 1098-E is checked, it means that the amount reported in Box 1 doesn't include the loan's origination fees and/or any capitalized interest. Only loans you took out before Sept. 1, 2004, however, should have box 2 checked. An origination fee is typically a percentage of your loan that's withheld from the disbursed funds. You can include a portion of this fee as deductible interest. Dividing the origination fee by the number of years you have to pay off the loan gives you the amount you can treat as student loan interest each year. And if the lender capitalized (increased the principal loan balance) for unpaid accrued interest, you calculate the portion that's deductible each year in the same way as the origination fee. Again, when you use TurboTax to prepare your taxes, we'll handle all of these calculations for you.

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