Subsidizing Higher Education Through the Federal Income Tax Code

Research Report

Subsidizing Higher Education Through the Federal Income Tax Code

Abstract

The Taxpayer Relief Act of 1997 expanded assistance for postsecondary education for low- and middle-income families with the creation of two new credits: the Hope Scholarship Credit (Hope Credit) and the Lifetime Learning Credit (LLC). Both are intended to subsidize the cost of attending school by allowing a portion of a student's expenses to be offset by a tax credit.

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