Bill would let Oregonians deduct student debt

SALEM, Ore. (AP) – Oregon lawmakers are considering a new approach to addressing the nation’s student debt problem.

Senate Bill 1034 would allow Oregonians with federal or private student loans to deduct the total amount of interest and principal they paid throughout the year from their state taxable income. It expands the existing federal student-loan deduction, which allows taxpayers to deduct only their annual interest payments up to $2,500, depending on income.

The Democratic President of the Oregon Senate, Peter Courtney, says he’s agreed to co-sign the Republican proposal.

Co-sponsors Courtney and Sen. Chuck Thomsen, R-Hood River, say it would apply to any Oregonian with a federal or private-sector loan, plus their parents, grandparents, employer or anyone else who helps out with their monthly payments.