In response, Senator Paul is suggesting a different approach that would make college tax-deductible.
Senator Paul spoke with Jim Stratman Thursday morning as he prepares to introduce the Tax-Free Education Act.
“You know, education has become so expensive over the last couple of decades. Over the last decade, the price of college has doubled. So, a lot of people are stuck with loans some with as much as $100,000. Some who have graduate degrees have $200,000 and it’s taking forever to pay them off,” Sen. Paul said. “The way I look at college is it’s a work expense. People go to college because they believed it was necessary to get a job, and it often is. So, I think it should be tax-deductible.”
Senator Paul says the Tax-Free Education Act would allow Americans to get a tax deduction for the student loans that they take out to pay for higher education.
He says creating a tax deduction will do two things: make an environment where colleges don’t have to cut costs and make sure that college students move into the workforce following their collegiate career.
“If the government gives more money to colleges it just simply causes the price of college to go up. In this case, we’re not giving you the money, you’re getting to deduct the money at a later date, but you still owe your $100,000 to college,” Sen. Paul said. “The problem with free is there’s no guarantee that you’ll actually work. If it’s a tax deduction you don’t get it unless you work. You have to have actually earned a salary in order to earn a deduction.”
Senator Paul says he expects to introduce this new bill in the next couple of days.