Oregon Democrat Rep. Peter DeFazio estimates the increase to the average student’s debt under the proposed legislation would rise from $17,500 to almost $23,000, or about $700 per term. For the RPI audience, this is pennies on the dollar when students paying their own way are borrowing in excess of $50,000. Nationwide, students and prospective students motivated to start and finish a four-year degree should not be discouraged in signing away another $6,000. It has no impact on their personal finances while in school because loans are not due until 6-9 months after graduation.

The good news is when you enter the real world, you will benefit from the tax breaks phased in over the last four years—for your average RPI graduate earning $55,000 the three percent reduction in the federal tax rate fully effective for 2006 totals $1,600 in year one of employment. With modest raises, you’ll make your $6,000 back in less than four years. Tax relief clearly benefits non-wealthy individuals and enables anyone with a job to pay off their loans.

Gregory Wester