Cut Back on Middle Class Tax Credits for College Costs

Congress and the Clinton administration have expanded dramatically the tax credits for college costs. But they are used only by families with income high enough to use them. Congress should redirect some of the $5 billion spent on tax credits to enlarging the Pell grant for low income students. Such changes would allow pell grants to exceed $6,ooo which is close to the average tuition at the average 4 year public college. Pell grants have eroded significantly over the past 30 years. Now that congress and the Bush administration have recently increased pell grants, it is time to break the policy mode and go after the tax credits.

Labels: college costs, income, support for college, wealth