Extension of college tuition bill put on hold due to government shutdown
October 13, 2013
The issue of college tuition is a growing concern for all students. It is something that every undergraduate and graduate must face.
Fortunately for college students all around Iowa may still be able to receive a tax deductible on their tuition and fees for another four years.
Congressman Bruce Braley, D-Iowa, said he hopes congress will vote to extend the bill before it expires at the end of this year.
When Braley was elected to congress he did a number of things to try and reduce the financial burden on students attending colleges and universities.
“One was to increase the availability of Pell Grant funding and the amount of funding available. The second was to cut in half the interest rates on federally insured Stafford loans… And the third was to simplify the tax credited, tax deductions available for college tuition and fees,” Braley said.
This bill allows students and their parents to claim the tax deduction for the cost of tuition and fees. It essentially puts money back into the pockets of Iowa college students said Robert Goldsmith, Legislative assistant for Rep. Braley.
“One of the reasons that [Braley] introduced this [bill] is because Iowa students are graduating with the third highest student debt the country. And he sees this as a tool, this tax deduction bill as a tool of putting more money back into the pockets of Iowa college kids,” Goldsmith said.
Jeff Giertz, communications director for Rep. Braley said he believes there is bipartisan support in congress for this bill.
“The reason why this tax deduction exists is because it’s popular it is so helpful to students and families who have students in college, who are going to be sending kids to college. This is a common sense way to make college more attainable and more affordable for many people and it’s a tax deduction already claimed by nearly 19 thousand families every year,” Giertz said.
Giertz said it has not been brought to a vote in the House yet. It is unclear right now when the House would actually vote on the bill. In theory, the bill is going to be pushed for a vote before the end of the year.
Sen. Tom Harkin, D-Iowa, said the current government shutdown would affect the progress of the bill.
“That’s something that would probably go into what we call a tax extenders package at the end of the year, to keep that provision in there. But, if we don’t have a government reopening here, that’s what would threaten that,” Harkin said.
Sen. Chuck Grassley, R-Iowa, however disagrees. He said he believes that the government shutdown will not affect the progress of the bill. Congress will address the bill sometime between Thanksgiving and Dec.
“So I would say it should be renewed… I see us renewing not only the provisions that Bruce Braley is talking about but also the other fifty or sixty things that expire like that on Dec. 31,” Grassley said.
In general, when it comes to college tuition and the affordability issues that students face, Congressman Steve King, R-Iowa, said the rising cost of tuition could be compared to shopping.
“Students and their parents should consider all the higher education options, loans, grants, and scholarships available and pick the best value for them. Just like competition drives the price down in any market, an educated group of consumers who shop for value will drive down the cost of tuition,” King said.
The extension of the tax-deductible bill is an important part of a puzzle that students and their parents look at in trying to make college more affordable said Braley.
“My prediction is that we are going to have to make sure that it’s one of the many issues that are important to Americans, particularly those attending college or those attempting to help to pay for college, to give them a little extra benefit in tax time to reduce their tax burden based on what they are paying for tuition and fees,” Braley said.