Federal Student Loan and Tax Policy that Disproportionately Effects Women
Susan T. sent a message using the contact form at
http://aauw-wi.org/contact.
After some reflection on recent national news about the federal student loan program, and considering my own continuing challenges as a women in academia, I can’t help but wonder if there are more junior faculty, specifically women, with similar issues:
A comparison with folks from more affluent backgrounds illustrates the continuing challenges: Many families are able to invest earning in college savings accounts from the time children are born. In many cases those earnings are deducted pre-tax, and they generate interest until they are withdrawn. Then, in many cases, when the child goes to college, the annual educational expenses are tax deductible. Thus, a triple benefit.
In contrast, a student who is paying off student loans is paying the cost of education, and the interest on that debt, in monthly payments after the fact, but that student is not allowed to deduct the cost of education
(principle) and, if they make over a certain amount (as in my case) is not allowed to deduct the interest. Paying income tax on earnings to pay for education, not allowed to deduct the cost of education, and not allowed to deduct the interest on debt. A triple cost, relative to the affluent.
To attain a Ph.D. and credentials that qualify for a tenure track position at the UW or other Research One Institution takes a lot of time and a lot of money. While the pay is somewhat competitive, after paying almost $500 a month in interest alone on my student loans, on top of the high cost of housing in Madison, I have very little to contribute to the cost of college education for my three kids, who are now too old to be claimed as dependents, and are now generating debt to their student loans. When I went back to school as a single mother, my hopes were to break the cycle of generational poverty I was born into. Those hopes are being stymied by this, in my opinion, flawed tax law.
I contacted Representative Baldwin’s office to inform them of this. While the staffer I spoke to seemed truly sympathetic, she had doubts that anything could be done. Because attracting and retaining faculty from diverse backgrounds, including working class/poor women, is important to diversity issues on campuses across the country, I’m wondering if the AAUW would be willing to convene a committee to explore ways to address this concern? Your advice will be much appreciated.
Sincerely,
Susan