Rep. Applebaum Introduces Refundable Student Loan Tax Credit

44b_jon_applebaumOn March 10, 2015, Rep. Jon Applebaum (DFL-Minnetonka) introduced HF1716, a bold legislative effort that will provide significant tax relief for all Minnesotans carrying student loan debt.  Under this bill, taxpayers are entitled to receive up to $5,000 in the form of a refundable tax credit based on the total of principal and interest payments made on their student loans.  The refundable student loan debt tax credit will apply to payments made on student loans at any postsecondary institution eligible for state student aid, in addition to any postsecondary institution that participates in the federal Pell Grant program.

“Student loan debt holds our economy back and is perhaps the greatest burden facing students, working families, and young professionals in Minnesota,” remarked Rep. Applebaum.  He continued, “With the fourth highest average rate of student debt in the country[1], it’s necessary for Minnesota to make post-secondary options more affordable.  This bill provides much needed relief for all Minnesota taxpayers carrying student loan debt, while encouraging those with such burdens to call Minnesota home and be a part of our tax base.”

The refundable student loan tax credit established by HF1716 already has bipartisan support with Higher Education Committee Chairman Bud Nornes signed on, in addition to a Senate author in Katie Sieben.  HF1716 is the second major higher education initiative Rep. Applebaum has introduced.  The first, HF 820, would provide academic grants covering all tuition and fees not covered by current grant and scholarships to high-achieving Minnesota high school students who enroll in a state public or MnSCU institution.  Both initiatives represent considerable steps in making Minnesota a national leader in post-high school affordability.

Rep. Applebaum encourages constituents to contact him with any questions, comments, concerns, or ideas. Rep. Applebaum can be reached by phone at 651-296-9934 or by email at rep.jon.applebaum@house.mn. Constituents can also visit Rep. Applebaum’s legislative page and sign up for email updates.

[1] http://www.usatoday.com/story/money/business/2014/07/05/states-most-student-debt/12025459/