ERIC Number: ED420230
Record Type: RIE
Publication Date: 1997-Feb
Taxing Matters: College Aid, Tax Policy & Equal Opportunity.
Education Resources Inst., Boston, MA.; Institute for Higher Education Policy, Washington, DC.
This report uses government data to review current, past, and proposed tax-based policies and programs to promote college affordability as well as need-based grant aid. Tax-incentive-based programs include savings bonds for education, employer-provided educational assistance, state college savings plans, deductibility of student loan interest, exclusion of scholarships and fellowships from taxable income, expanded Individual Retirement Accounts and/or special education savings accounts, and tuition tax deductions and credits. Major findings of the analysis indicate that: (1) despite increasing evidence that the investment in need-based student aid has positively impacted equal educational opportunity, students from high-income families still have higher college-going rates than do students from middle- and low-income families; (2) the majority of grant-aid recipients are students from the lowest income groups who attend public colleges and universities; (3) tax deductions and other uses of the tax code have been most beneficial to taxpayers with high incomes; (4) the current use of tax-based assistance for higher education is modest; and (5) proposed strategies to increase the use of tax-based assistance could benefit families who already take advantage of the tax code. These findings are documented in chapters discussing grant-aid recipients, beneficiaries of tax policies, and proposed federal tax policies. (Contains 36 reference endnotes.) (DB)
Descriptors: Access to Education, Equal Education, Family Income, Financial Needs, Grants, Higher Education, Need Analysis (Student Financial Aid), Paying for College, Public Policy, Student Financial Aid, Tax Deductions, Taxes
Education Resources Institute, 330 Stuart St., Suite 500, Boston, MA 02116-5237; phone: 800-255-TERI, ext. 4762; fax: 617-451-9425; www.teri.org (free).
Publication Type: Information Analyses; Reports - Descriptive
Education Level: N/A
Authoring Institution: Education Resources Inst., Boston, MA.; Institute for Higher Education Policy, Washington, DC.