Brief Strengthening Federal Student Aid: Reforming Education Tax Credits and Deductions
Sandy Baum, Martha C. Johnson
Display Date
File
File
Download Report
(301.51 KB)

Recent proposals for reforming the current system of education tax credits and deductions take the constructive approach of seeking improvement in a system many would prefer to eliminate. Detailed proposals reviewed for the Strengthening Federal Student Aid report agree that the existing system is too complicated, and most suggest consolidating the credits and deductions into one credit. All proposals that address income eligibility would target benefits lower down the income distribution than in the current system. These changes, as well as improving coordination with Pell grants and applying a lifetime dollar limit, can make the system simpler and more effective.

Research Areas Education Taxes and budgets
Tags Higher education Beyond high school: education and training Higher Education Act
Policy Centers Income and Benefits Policy Center Center on Education Data and Policy
Related content
Media Name: ap_federal-student-aid-2.jpg
Amid concerns about student debt and default, many experts are calling for an income-driven student loan repayment system that will better protect students and significantly reduce defaults. Our review of detailed proposals related to income-driven repayment in the Strengthening Federal Student A...