An Illinois congressman wants to tweak the federal tax code to help some college students save money.
Currently, only graduate teaching assistants receive their tuition credits tax free. But, Rep. Rodney Davis (R-IL 13th District) wants that to apply to all graduate students. He says it’s the fair thing to do.
“Frankly, it helps reduce debt,” said Davis. “The student debt problem in this country, I believe, is the next bubble that is going to burst because the student debt that is held in this country right now, actually, is more than all auto and credit card debt combined.”
According to the Federal Reserve, the average student is $28,000 in debt. More than 10% of loan recipients are in default.