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ERIC Number: ED201289
Record Type: RIE
Publication Date: 1978-Feb
Pages: 49
Abstractor: N/A
Reference Count: 0
Middle Income Students and the Cost of Postsecondary Education.
Froomkin, Joseph; And Others
Current proposals to assist middle-income groups with college costs and estimates of the burden to parents in different income groups are considered. Reasons for discontent by middle-income and upper-income groups regarding college costs are considered in relation to the following issues: the demographic squeeze, the temptation to choose high-cost alternatives, other sociological and economic factors, current contribution schedules and inflation, and political reality and government objectives. Estimates are presented of the costs of education, burdens by family income group, and the distribution of aid to students. Additionally, attendance patterns by income group are analyzed. The proposed legislation for the $250 refundable tax credit is evaluated and compared to the Carter Administration proposal. The estimated costs of both proposals and their benefits by income group are summarized. The Administration proposal consists of three parts: (1) a minimum grant of $250 to be distributed to students in families with adjusted gross incomes below $25,000 a year; (2) a $l65 million increase in the College Work-Study appropriation; and (3) an increase of the eligibility ceiling of the Guaranteed Loan Program to $45 thousand adjusted gross income. It would provide benefits to full-time undergraduates and to some part-time and graduate students. The Administration proposal will cost $1.2 billion, and the $250 refundable tax credit will cost $1.6 billion. The tax credit proposal will distribute 29 percent of the benefits to persons with incomes over $25,000 in 1978. The Administration proposal limits this share to 11 percent. The Administration proposal is recommended because it keeps the subsidy visible, rather than embedding it into the tax system, and it costs about $400 million less than the tax credit. (SW)
Publication Type: Opinion Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: Department of Health, Education, and Welfare, Washington, DC.
Authoring Institution: Froomkin (Joseph) Inc., Washington, DC.; Educational Policy Research Center for Higher Education and Society, Washington, DC.