Young adults have a right to be up in arms

[Tonington]

Personally, a nice change to start with would be tax credits. I get tax credits for interest paid back on my government loans, but not for interest paid back on my student line of credit with TD Canada Trust. Right now, government loans account for about 60% of total student debt in this country. In my case the government loans account for slightly less than 40%. It would be nice if the tax code were less biased towards government loan repayment.

 

[petros]

You want tax credits on a line of credit?

 

[SLM]

Personally, a nice change to start with would be tax credits. I get tax credits for interest paid back on my government loans, but not for interest paid back on my student line of credit with TD Canada Trust. Right now, government loans account for about 60% of total student debt in this country. In my case the government loans account for slightly less than 40%. It would be nice if the tax code were less biased towards government loan repayment.

In principle I wouldn't disagree but are there realistically enforceable methods of ensuring that any draw against a student line of credit is used for either school or basic living costs?

I know of a parent who has utilized their son's bank provided student credit line to purchase investments. Now they repay the principal and pay the interest on it but I would have a hard time as a taxpayer subsidizing this by providing a tax credit for the interest paid.

 

[Tonington]

In principle I wouldn't disagree but are there realistically enforceable methods of ensuring that any draw against a student line of credit is used for either school or basic living costs?

Yes, every year I had to give them my confirmation of enrollment signed by the Registrar's Office, then they would adjust the credit limit.

 

[petros]

Just like they ask for employment for any other line of credit?

 

[SLM]

Yes, every year I had to give them my confirmation of enrollment signed by the Registrar's Office, then they would adjust the credit limit.

No I get that, it's not just about confirming enrollment though. You could technically use the money for anything. Let me be clear, I'd have absolutely no problem at all with a similar tax credit for different methods of funding schooling or even basic living expenses while attending school, but the banks would have to adjust the way that they provide the LOC. Like in the example I used I would have a problem giving someone a tax credit for using student LOC for funding a family vacation or stock portfolio.

 

[petros]

CSL provides loans big enough for a student to survive. Any other loans taken by a student are purly for personal use.

 

[Tonington]

No I get that, it's not just about confirming enrollment though. You could technically use the money for anything.

Technically, after your tuition is paid you can use government student loans for pretty much anything. I knew of students who spent more of their cost of living on booze and drugs than they did on food, books, accomodations etc. Though these aren't the typical student by any means.

Like in the example I used I would have a problem giving someone a tax credit for using student LOC for funding a family vacation or stock portfolio.

It wouldn't be difficult to make qualification of those tax credits less prone to abuse. Attach receipts. Income from loans and work is X, qualifying expenses are Y. If the difference between X and Y is the line of credit, then it qualifies as a student line of credit for income tax purposes. Something like that.

CSL provides loans big enough for a student to survive. Any other loans taken by a student are purly for personal use.

That's not true. Do you know any students enrolled in professional programs? Those loans max out far below the costs of the tuition alone.

 

[SLM]

It wouldn't be difficult to make qualification of those tax credits less prone to abuse. Attach receipts. Income from loans and work is X, qualifying expenses are Y. If the difference between X and Y is the line of credit, then it qualifies as a student line of credit for income tax purposes. Something like that.

Yep, that's all I'm saying.

 

[petros]

Noooo. Pay you own way if you are borrowing personal money. It's what grown ups do.

 

[Tonington]

Noooo. Pay you own way if you are borrowing personal money. It's what grown ups do.

Ahh, so there are no tax credits for parents ehh? Bye bye troll.

 

[petros]

For personal loans? **** no. Grow up and pay your bills like a man.

 

[Tonington]

For personal loans? **** no. Grow up and pay your bills like a man.

Durp. Wrong again, what a surprise. Mortgage interest paid on a rental property can be deducted against rental income.

 

[petros]

Because a rental property is considered a source of income like a business with rental income being taxable.. It's not a personal loan.

 

[gerryh]

Durp. Wrong again, what a surprise. Mortgage interest paid on a rental property can be deducted against rental income.

Really, that's your comparison? Guess I wasn't too far wrong when I made the comment that people with university degrees are stupid.

 

[Tonington]

Because a rental property is considered a source of income like a business with rental income being taxable.. It's not a personal loan.

Yeah right. So if you get a mortgage for your house, move away, and buy another house, and start renting your old house, suddenly your old mortgage is no longer a personal loan? Ad-hoc redefinition.

Another personal loan that was tax deductible, home improvement loans.

Though I'd love to hear your reasoning for why different types of loans shouldn't have to be paid in full by whomever takes out the loan. Sounds like you really don't care about personal responsibility. :lol:

 

[gerryh]

Though I'd love to hear your reasoning for why different types of loans shouldn't have to be paid in full by whomever takes out the loan. Sounds like you really don't care about personal responsibility. :lol:

No, the ones without personal responsibility are the dumb ass, greedy little bastards that figure they should have everything handed to them on a silver platter.

 

[petros]

A mortagage isn't a personal line of credit and home improvement loan adds equity to a home. The home has value which can be extracted upon default. A personal loan requires cash repayment upon default.

 

[gerryh]

A mortagage isn't a personal line of credit and home improvement loan adds equity to a home. The home has value which can be extracted upon default. A personal loan requires cash repayment.

we should give him a break.... he's barely outa school.... been barely fu cked, let a lone fu cked over, give him another 15 to 20 years to grow up and he'll figure it out.

 

[EagleSmack]

Guess what...

These people...

...complained about these old people and their wealth...

Now these people...

...are complaining about these ones!