'A Tax on Education': Colleges Say GOP Tax Bill Burdens Students

"The Republican tax bill unveiled Thursday amounts to a 'tax on education,' according to one North Carolina college administrator," McClatchy DC reports.

"The 76-page bill, called the Tax Cuts and Jobs Act, does away with a number of tax deductions and credits to help pay for lowering personal income tax rates and corporate tax rates.

Colleges, universities and students could be affected by many of the changes. The bill would eliminate deductions for student-loan interest payments and education expenses, repeal deductions that help part-time students and hit private schools by taxing more of their investments and ending their use of tax-free bonds for construction projects.

'It’s puzzling why a bill that is focused on job creation would place a greater burden on students and others who are trying to improve their lives by going to college,' said Michael Schoenfeld, Duke University’s vice president of public affairs and government relations. 'It seems to be a tax on advancement or a tax on education, which is just an odd thing to be doing.'

More than 12 million used the student loan interest deduction in 2015, according to IRS records.

'If people want to debate whether the student loan interest deduction is a good use of federal dollars, that’s a fair point. It’s troublesome to see it outright eliminated to pay for broader tax reform,' said Megan Coval, vice president for policy at the National Association of Student Financial Aid Administrators, which represents those college officials. 'The process of how it’s being eliminated is concerning.'"

NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 11/6/2017

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