ERIC Number: ED457808
Record Type: Non-Journal
Publication Date: 2001-Nov
Reference Count: N/A
Hope Works: Student Use of Education Tax Credits. New Agenda Series[TM], Volume 4, Number 2.
Hoblitzell, Barbara A.; Smith, Tiffany L.
This report shares information about the use of the Hope and Lifetime Learning education tax credits by students at one large state university system, the University of California (UC). The study also assesses the success of these education tax credits in helping students and families meet the cost of postsecondary education. A survey about education tax credits was completed by 3,644 UC students. Of these students, 29% indicated that they had claimed either of the credits in tax year 1999. Graduate students were more likely to claim an education tax credit (37%). Forty-five percent of students claiming the Hope tax credit were able to claim the maximum amount, and 25% of all those claiming the Lifetime Learning tax credit claimed the maximum amount. The group making the greatest use of the credits was dependent undergraduates whose parents reported incomes between $60,000 and $79,999. For the students, generally not eligible for need-based gift aid, these credits are the only nonrepayable assistance they can receive to help with the cost of their educations. Students with parent income at either end of the distribution were unlikely to claim the credits. A significant number of students, 19% of responded, or 27% of nonclaimers, stated that they were not aware of the credits. The total estimated value of the Hope tax credit to UC students in tax year 1999 was $34.9 million, and the total value of the Lifetime Learning tax credit to UC students was $44.7 million. It is evident from these findings that the education tax credits have enjoyed some early success in helping students and their families meet the cost of higher education, and that the effort UC puts into providing students information about the credits is worthwhile. (Contains 26 tables, 3 exhibits, and 13 endnotes.) (SLD)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Lumina Foundation for Education, Indianapolis, IN.