ST. PAUL, Minn – Senator Matt Little (DFL-Lakeville) and Senator Greg Clausen (DFL-Apple Valley) have a much longer history together than most senators in St. Paul. Sen. Clausen served as the Principal of Rosemount High School during Sen. Little’s tenure as a student at the school in the early 2000’s. The student-principal duo are happy to reunite as colleagues in the Minnesota Senate and as co-authors of a bill to provide up to a $5,000 tax credit to Minnesotans paying off student loans.
“As someone who is still paying off student loans, I am more than familiar with the pains they cause people who are still in the beginning stages of their professional careers. I am honored to be co-authoring this student loan tax credit bill with my former high school principal. This bill could make a good dent in relieving some of the pressure caused by student loans on so many Minnesotans,” said Sen. Little.
“Student loan debt not only hurts students, but it also hurts the economy by preventing graduates from making durable investments, such as houses and cars, that have historically kept our economy moving and healthy,” Sen. Clausen said. “Student loan balances by those in their thirties have doubled, further increasing the delay of these traditional lifestyle choices that stimulate our economy. However, because of the broad and growing support for the student loan debt tax credits, I am cautiously optimistic we can finally begin to make some progress and find sound, bipartisan solutions to reducing student loan debt.”
The senators’ bill would provide a maximum tax credit of $5,000 per year to individuals or parents paying off federal or private student loans who make up to $94,000 or less a year; and married couples filing jointly making $145,000 or less per year. Tax credits decrease according to increasing incomes.