Tax Policy Center's Elaine Maag Highlights CLASP's Recent Paper on Reforming Tax-Based Aid
Feb 25, 2013
This morning, Elaine Maag of the Urban Institute and Brookings Institution's Tax Policy Center (TPC), a leading voice in tax policy, highlighted CLASP’s recent paper, Reforming Student Aid: How to Simplify Tax Aid and Use Performance Metrics to Improve College Choices and Completion on TaxVox, the TPC Blog. In writing Reforming Student Aid, CLASP partnered with TPC to estimate the budgetary impact of its proposals to reform tax-based student aid.
In her piece, Education Tax Credits Rival Pell Grant Program in Size: Reforms Proposed, Maag provides an overview of the growth and current distribution of tax-based student aid and emphasizes the need to reform this major investment in postsecondary education. An excerpt of the piece is below:
“Tax-based aid for higher education quadrupled between 2000 and 2010 and will continue to be a large part of the financial aid story – at least through 2017 when the American Opportunity Tax Credit is scheduled to expire. As part of a series of reports on federal financial aid, the Center for Law and Social Policy is urging a full review of who receives tax benefits for education, how those benefits compare with the better-known Pell grants, and whether Congress should reform higher education benefits. It proposes some important ideas for better targeting those subsidies to students who need them the most.”