As co-authors of the student loan tax credit, we are thrilled this landmark provision is part of the final, agreed upon tax bill. Student debt continues to be a major issue for many of Minnesota’s students. A recent report found that Minnesota’s students rank fifth in the nation in total debt burden. This burden continues to be a drag on the larger economy as students struggle to pay off their debt, start their families, and buy their first homes. This provision creates a credit of up to $1,000 for eligible individuals and their parents who are paying for student loans.
The percentages of student loan payments eligible for the credit are:
- 50% of qualified educational loans.
- 65% of qualified loans for eligible individuals in a public service job.
- 75% of qualified loans for eligible individuals in an education profession.
$36.1 million is appropriated in 2016-17 and $74.6 million appropriated in 2018-19.