Cancel the Debt, Cancel the Tax: Exclude Student Loan Debt Relief from Gross Income Using the General Welfare Exclusion
Document Type
Response or Comment
Publication Date
Summer 2023
Journal
American University Administrative Law Review
Volume
75
Issue
3
Abstract
The mounting student loan crisis is seriously encumbering this country’s upcoming generation with approximately one in four borrowers struggling to repay or already in default. The cumulating federal student loan debt surpassed $1.6 trillion in 2022 and seriously impaired the younger generation’s ability to save after entering the job market. The effects of debt are even more crushing for the nearly one-third of the forty-five million borrowers that have debt but no post-secondary degree. Many could not complete their degree because the cost of attendance was too high. The high monthly payments and ballooning balances make it harder for borrowers to build wealth through buying a house or saving for retirement.
Recommended Citation
Xu, Hao Tony, "Cancel the Debt, Cancel the Tax: Exclude Student Loan Debt Relief from Gross Income Using the General Welfare Exclusion" (2023). Celebrating WCL Student Authors. 70.
https://digitalcommons.wcl.american.edu/stusch_lawrev/70