UNCLE SAM MAKES OUT LIKE A BANDIT WHEN COLLECTING STUDENT DEBT
If you are a college or professional school student, it’s likely that you are single. The personal exemption amount for 2016 on a single filer is $4,050. The standard deduction is $6,300. That totals $10,350. You can earn that much before you have a federal income tax bracket. After that you can earn another $9,275 and still only pay federal income taxes at 10 percent.
Things are different when you graduate and start your working career. With an average starting salary of $50,651 last year, a typical college grad, still single, broke into the 25 percent tax bracket, which starts at a taxable $37,651. If they earn more than the average amount, as most hope, they will be well into the 25 percent tax bracket. – READ MORE