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GOP Tax Plan Would Eliminate Student Loan Deduction, Educational Assistance Programs

The tax plan unveiled by House Republicans on Thursday permits the use of previously off-limits education savings accounts for tuition at K-12 private schools, though it stops short of allowing states to create a scholarship tax credit or voucher to help cover private school tuition – originally one of Education Secretary Betsy DeVos’ top priorities in her school choice agenda.

Along with allowing up to $10,000 from 529 savings accounts – currently reserved for college-related expenses – to be used by private school students in kindergarten through 12th grade, the plan includes a handful of other provisions that stand to impact the education arena.

For example, the plan would no longer allow borrowers to deduct interest paid on their student loans.