FORD CALLS FOR COLLEGE TAX DEDUCTION TO BE MADE PERMANENT

http://www.house.gov/apps/list/press/tn09_ford/pr_050613_collegetaxduduction.html

CONGRESSMAN HAROLD FORD
CALLS FOR COLLEGE TAX DEDUCTION TO BE MADE PERMANENT

WASHINGTON, D.C. – In the wake of recent reports showing that Tennessee’s public universities are raising tuition rates, some as high as 13 percent, Congressman Harold Ford (D-TN) today called on his colleagues to make permanent a provision in the federal tax code that provides a $4,000 tax credit to offset the cost of post-secondary education. The provision is set to expire at the end of the year.

“It is no secret that the cost of higher education is skyrocketing,” Ford said in a letter to a key congressional committee chairman with jurisdiction over the legislation. “Across the nation, parents are grappling with tuition rates that consistently outpace inflation. In Tennessee, the state university system recently announced a tuition increase of almost 10 percent across five of its six universities and all 13 of its community colleges. These changes will affect the more than 150,000 students who attend public colleges and universities in Tennessee.”

The credit is available for individual filers earning up to $65,000 and joint filers up to $130,000. Moreover, individual earners up to $80,000 and joint filers earning up to $160,000 are eligible for a $2,000 deduction.

“For the long term, we need a national service plan so that kids can pay for college through service to the country,” Ford said. “The ability to pay for a higher education should not determine where a young person goes. If a student earns the chance to attend an expensive college, she should be able to go, regardless of her income status. A national service plan would allow each student to attend the college of her choice, so long as she is willing to pay her country back through national service. I am currently developing legislation to adopt such a program, which I plan to introduce in the coming months. In the meantime, it is critical that we pass the education tax credit extension as a short term solution.

Ford also pointed out that fewer Tennessee families will benefit from the Pell Grant program because the U.S. Department of Education has modified the formula. Under the change, families must count more of their income and assets toward college expenses before becoming eligible for financial aid.

Text of the letter follows:

June 10, 2005

The Honorable William Thomas
Chairman, Committee on Ways and Means
U.S. House of Representatives
1102 Longworth House Office Building
Washington D.C. 20515

Dear Chairman Thomas:

I am writing to request that the Committee on Ways and Means consider H.R. 2564, a bill that I am co-sponsoring with Congressman Phil English that would make the education tax credit permanent for qualified taxpayers, so that the bill can be reported to the full House.

It is no secret that the cost of higher education is skyrocketing. Across the nation, parents are grappling with tuition rates that consistently outpace inflation. In my home state of Tennessee, the state university system recently announced a tuition increase of almost ten percent across five of its six universities and all thirteen of its community colleges. The lone exception is the University of Memphis, whose students’ can expect to see an increase of approximately 13 percent. These changes will affect the more than 150,000 students who attend public colleges and universities in Tennessee.

Yet as the cost of education soars, the federal government is compounding the problem by slashing education assistance. For example, the administration has proposed completely eliminating the Perkins loan program that gave $1.3 billion to 675,000 low-income students to help make ends meet in 2004 alone.

In addition, the U.S. Department of Education has modified the formula used to evaluate students’ eligibility to receive Pell grants in a way that will reduce awards available to low-income college students. Under the change, families must count more of their income and assets towards college expenses before becoming eligible for financial aid. The result is that families are receiving less financial aid – $1,800 less today on average than they received in 2000, according to a recent New York Times estimate. The American Council on Education has estimated that, as a result of the change, 89,000 people will lose their Pell grants and 1.3 million will receive reduced awards.

By allowing qualified taxpayers to claim an above the line credit of up to $4,000, the education tax credit has long helped ease this burden for low-income students. However, as you know, the credit is due to expire at the end of this year. Six and one-half million taxpayers claimed the credit in 2002, using it to open the door to higher education and improve their lives. But if Congress does not act to make the tax credit permanent, we will be guilty of helping to slam this door shut in the face of millions of working Americans.

For the long term, we need a national service plan so that kids can pay for college through service to the country. The ability to pay for a higher education should not determine where a young person goes. If a student earns the chance to attend an expensive college, she should be able to go, regardless of her income status. A national service plan would allow every student to attend the college of their choice, so long as they are willing to pay their country back through national service. I am currently developing legislation to adopt such a program, which I plan to introduce in the coming months. In the meantime, it is critical that we pass the education tax credit extension as a short term solution.

I therefore urge you to consider H.R. 2564 so that it can be reported to the full House. I thank you in advance for your consideration. Please do not hesitate to contact me if I may be of further assistance.

Sincerely yours,
HAROLD FORD

Ford sounds like a good guy. This is the kind of thing we should be talking about.

Even community college is expensive. I'm apart of the local community school and it gets sooo pricy with the books and everything. Oy. So I can only imagine how a school like UTK or UTC would cost. :crazy: Especially hard now days in Bush land. :crazy:

This is from our local news:

Costs of college
The cost of going to Columbia state and local vo-tech schools is about to go up. The state board of regents has approved a tuition hike of nearly ten percent for Columbia state and other Community colleges in the state. The rate hike will go into effect this fall.

The cost of tuition for vo-tech schools is going up even more...the hike will be 15 percent.
In actual dollars, the increase will will be 190 dollars per semester at Columbia State and go up 232 dollars per semester at tech centers.
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I am attending the University of North Alabama and it is less expensive than some colleges, but it is still outrageous.

Last two terms I just was interested in taking one class. That a lone was around $500-600 and then you add up everything with books and sometimes you can't find books on sale depending on what it is and if the class updated books and all that. You can always sell your books of course at the end. I can't imagine going to a school like UTK or MTSU or something like that where it'd be more expensive. My dad does pretty good with TVA but I know other families don't have it so lucky.