POUGHKEEPSIE – U.S. Congresswoman Sue Kelly announced today that she has introduced legislation in the U.S. House of Representatives that would enable college students or parents to deduct all tuition expenses on their federal income taxes and help them better afford the ever-increasing cost of post-secondary education.

 

Kelly and Marist College President Dr. Dennis Murray were joined by Marist students and parents as they discussed the details of Kelly’s More Money for College Act at Marist’s Student Center. The bill would make the entire out-of-pocket cost of college tuition tax deductible for families or individuals.

 

“I want to provide you with the ultimate financial aid for college,” Kelly told Marist students. “With tuition costs are rising faster than salaries and inflation, it’s time to make your college tuition dollars tax-free.”

 

Kelly noted that the average college tuition rises at a rate of 8 percent per year (about twice the rate of inflation). Tuition increases double the cost of a college education every 9 years. “A tuition tax deduction is the most effective and absolute way to provide college tuition relief directly to families and individuals. What you pay is what you deduct,” Kelly said.

 

“Whether you’re working parents putting two or three kids through college at once, a student paying your own way through undergraduate or graduate school here at Marist, or an adult taking some college courses later in life, my message is as simple and straightforward as the name of my bill. The federal government needs to let you keep more of your own money for college rather than making you send it to Washington in taxes.”

 

Murray said that Kelly’s bill would allow students of all ages to pick the best college for their educational needs, without letting price be the barrier. 

 

“Even though Marist is rated by the financial magazine Barron’s as a ‘best buy,’ we realize that families make great sacrifices to have their loved ones attend Marist,” said Murray. “Congresswoman Kelly’s bill should be seen as an investment in the future of our country. The tax credit offered in this proposal will pay significant dividends when students graduate and become productive wage earners and good citizens in communities across the nation. Congresswoman Kelly deserves recognition for her leadership and her support of higher education.”

Kelly said that the More Money for College Act should encourage increased college enrollment, particularly at graduate schools and community colleges, as workers who previously didn’t consider career advancement or job training courses could find it a more affordable option with the new tax deduction. It also would especially help undergraduate students taking additional summer courses that add to their tuition costs and for which financial aid is rarely available.

 

Kelly called this “an ideal time to implement a full college tuition tax deduction.” Tax relief provisions passed by Congress and signed by President Bush in 2001 made a portion of college tuition costs tax deductible for the first time ever. Up to $4,000 can be deducted each tax year between 2002 and 2005.

 

However, this provision is due to expire at the end of this year, meaning a significant tax increase in 2006 on millions of families nationwide trying to afford college. “The More Money for College Act would give Marist families more money, not less, to put toward their college education,” Kelly said.

 

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