Schor Student Loan Tax Credit Bill Offers Help with Higher Ed Costs
LANSING - State Representative Andy Schor (D-Lansing) said today that his bill offering tax credits to students who stay in Michigan to work after graduation would give them some relief regardless of whether or not Congress comes to a consensus on student loan interest rates.
On July 1, student loan interest rates for students taking out subsidized loans doubled to 6.8 percent. Congress is working to try to keep the interest at 3.4 percent, where it had been. In May, Schor and supporters gave testimony on his bill, House Bill 4182, in the House Michigan Competitiveness Committee.
“Since the May committee hearing on HB 4182, we’ve been working on some changes to the bill that will make it better for our students,” said Schor. “As federal officials work on interest rates on subsidized student loans, it’s important for us at the state level to do what we can to help students who face higher tuition costs every year and who graduate with considerable student loan debt.”
HB 4182 would encourage students graduating from Michigan’s higher education institutions to live and work in Michigan after graduation by offering income tax credits for a portion of their student debt. Eligible individuals could claim an income tax credit equal to 50 percent of the amount of qualified student loan payments made during a tax year - up to 20 percent of the average yearly tuition for Michigan’s public universities.
“My bill will not only help students, it will also help our communities by keeping talented young professionals working and living in Michigan,” said Schor. “I look forward to working with my colleagues on HB 4182 and moving it through the legislative process and to Gov. Rick Snyder for his signature.”