Research Report Subsidizing Higher Education Through the Federal Income Tax Code
Katie Fitzpatrick, Elaine Maag
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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.