Tuesday, January 27, 2009
Education tax credit added to stimulus
U.S. Rep. Tom Perriello helped get elements of his bill folded into the stimulus package.
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From The Roanoke Times
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Ferrum College students, like many in the country, are in need of relief when it comes to financing their college experience.
"Textbooks are outrageous," said Ferrum Student Government Association President Tim Shipe. "The FAFSA [Free Application for Federal Student Aid] -- that thing is very confusing."
U.S. Rep. Tom Perriello, D-Albemarle County, stopped by the college Monday to shed more light on what Congress is doing.
Perriello and Rep. Lloyd Doggett, D-Texas, were able to get $13.5 billion in higher education tax credits -- originally proposed under the College Learning Access, Simplicity and Savings Act -- added to the American Recovery and Reinvestment Plan, a new stimulus package proposed by President Obama.
The House of Representatives should vote on the plan this week, Perriello said.
"In this tough job market, any American who wants to become more competitive by attaining more education and training should be able to do so, and this bill will make that education more affordable," Perriello said.
The plan allows for a tax credit of up to $2,500 of tuition costs and related expenses. Up to $1,000 of that is refundable, and for the first time, textbooks will be included in the credit.
"It's very critical that textbook help was included," said Jennie West, a social work professor at Ferrum.
Students struggle to pay for the necessary textbooks and often end up sharing, she said. The price of textbooks, which can reach $150 each, also plays into which books professors choose to require for their classes.
While some publishers offer online versions of the textbooks at a cheaper price, for some students, it's no substitute for the actual book, West said.
The National Association of Independent Colleges and Universities often makes recommendations to lawmakers on how to make higher education more accessible and affordable, Ferrum President Jennifer Braaten said.
"We're so thrilled someone is listening," she said.
This new tax credit replaces the Hope Tax Credit and the above-the-line tuition tax deduction for the next two years. It also will simplify the process of applying for financial assistance, Perriello said, cutting down on the amount of paperwork needed.
If approved, the credit would start in 2010.
"We are, in no uncertain terms, in an economic crisis," Perriello said.
"We're working as hard as humanly possible to get things moving quickly," he said, adding that education and work force development are critical.
