Report Advocates Advance Awarding of College Tax Credit

November 3, 2010

The federal government's tax credit for higher education expenses should be made fully refundable and deposited into college savings accounts for Americans from low- and middle-income backgrounds when the students are in middle school, the New America Foundation argued in a report Tuesday. The report, "Enhancing Tax Credits to Encourage Saving for Higher Education," says that that change and others are necessary to make the federal college tax credits beneficial for students from less-wealthy backgrounds.

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