MONTCLAIR, N.J. – Today, United States Senator Frank R. Lautenberg (D-NJ) joined students, parents and administrators at Montclair State University to call for an extension of the Higher Education tax Deduction, which took effect in 2002 but expired in 2005, and allowed taxpayers to subtract tuition and related fees from their taxable income.
Lautenberg said the Bush Administration and Congress should extend the deduction so taxpayers can use it on their upcoming 2006 tax returns. He also called for increasing the maximum deduction from $4,000 to $12,000.
"A college education is more important than ever before, but it's also harder for families to afford," Senator Lautenberg said. "To keep the door of opportunity open, we must extend the tax deduction for college tuition."
In 2004, 4.7 million individuals and families took advantage of the tax deduction, but the Republican-controlled Congress let it lapse at the end of 2005.
Lautenberg also called for increasing Pell Grants for deserving students.
In 1975, Pell Grants (www.ed.gov/programs/fpg/index.html) covered 80 percent of a student’s annual cost of tuition on average. But today, after being frozen for four years at $4,050 - the same level as fiscal 2003 - Pell Grants cover less than half the cost of the average four-year public college.
The following chart shows how Pell Grants have stagnated under President George W. Bush while college costs have soared:
President | Fiscal Year | Maximum Pell Grant Amount ($) |
Bush I | 1990 | 2,300 |
Bush I | 1991 | 2,400 |
Bush I | 1992 | 2,400 |
Bush I | 1993 | 2,300 |
Clinton | 1994 | 2,300 |
Clinton | 1995 | 2,340 |
Clinton | 1996 | 2,470 |
Clinton | 1997 | 2,700 |
Clinton | 1998 | 3,000 |
Clinton | 1999 | 3,125 |
Clinton | 2000 | 3,300 |
Clinton | 2001 | 3,750 |
Bush II | 2002 | 4,000 |
Bush II | 2003 | 4,050 |
Bush II | 2004 | 4,050 |
Bush II | 2005 | 4,050 |
Bush II | 2006 | 4,050 |
Bush II | 2007 (proposed) | 4,050 |
"Thousands of students from working families depend on Pell Grants to go to college," said Lautenberg. "By freezing these grants, President Bush has left them out in the cold."
"The amount of debt I've accrued threatens to take up a sizeable amount of my future income in interest payments," said Rutgers student Sharo Atmeh, a speaker at today's event. "Every bit of government relief makes a difference in the lives of parents and students."
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