The GOP tax plan would ax the deduction for student loan interest

Student loans.
(Image credit: iStockphoto)

House Republicans released their tax overhaul plan Thursday, proposing a number of major changes to the decades-old code. Part of the bill, for example, calls for the elimination of so-called "special interest deductions," such as a tax credit for adopting children or an "itemized deduction for medical expenses, a crucial provision to households with extraordinary health-care costs," The Wall Street Journal writes.

The special interest deductions category also includes the deduction for student-loan interest. As the rules stand now, qualifying individuals are able to deduct up to $2,500 in interest paid toward federal and private student loans, CNBC reports. While there are certain income restrictions that go along with that, the deduction as it stands now counts as "above-the-line," applying directly to taxable income. In 2015, 12 million people used the student loan interest deduction on their 1040 forms.

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Jeva Lange

Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.