The much publicized American Recovery and Reinvestment Act (Stimulus Bill) is a $790 billion package of spending and tax provisions designed to stimulate the economy and prevent the onset of a deep recession. The benefits for students and families can barely be found on the radar which indicates no support from Congress. This is especially surprising since these parents, students and their children and grandchildren will be paying for this bill over the coming decades. It also illustrates very clearly that families have no lobbyist or organization to grease the palms of the legislators. Colleges do lobby for additional grants, loans and aid that in turn however makes it much easier for them to raise tuition.
Pell Grants will increase to a maximum of $5,350 for the 2009-10 school year which is a $500. increase. Once you submit the FAFSA you will receive a Student Aid Report (SAR) which will indicate your Expected Family Contribution and eligibility status for a Pell Grant.
Work Study will be increased allowing for more campus based work opportunities for those students eligible for need based aid. The College Plan suggests that students should work no more then 10 hours per week. If a student makes $8. and hour do not accept an award that exceeds $2400. To illustrate $8. time 10 hours equals $80 a week times 15 weeks equals $1200. for the semester or $2400. for the year.
Tax Credit The American Opportunity tax credit replaces the Hope Credit and allows a tax credit of up to $2500.per student per year for tuition and related expenses for up to four years. It also expands the maximum eligible income range to $160,000 - 180,000 for married couples filing jointly. The new credit only applies to 2009-2010; after 2010 the law reverts to the Hope credit unless the new credit is extended. The Hope credit is limited to two years and maximum income of $120,000.
529 Plans now include computer technology as a qualified education expense for 2009 and 2010 adding to the current list of tuition, fees, books and room and board expenses.
Homer Sweeney
NACAC and WSJ
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