State lawmakers are pushing a measure that would add a personal income tax deduction for student loan payments as part of an effort to ease the burden of debt for students.
The measure would let taxpayers use up to $5,000 a year in pre-tax dollars to pay their student loans.
“As both a parent and proud SUNY graduate, I know firsthand the value of a quality education,” Assemblyman Angelo Santabarbara said in a statement backing the measure. “Working together, colleges, states, and the federal government can all play a role in helping students get through college without the financial burden that weighs them down long after graduation.”
The average debt load for students in New York was more than $31,000 in 2019.
The deduction would apply to student loan debt a taxpayer has incurred for themselves, their spouse, or a dependent that is not already covered by federal tax deductions and credits.
If approved, the deduction would take effect for the taxable year beginning after January 1, 2022.