With All Eyes on Taxes Today, Check Out Our Recommendations on Tax-Based Student Aid
Apr 15, 2013
In February of this year, the Center for Postsecondary and Economic Success at CLASP released a major report entitled, Reforming Student Aid: How to Simplify Tax Aid and Use Performance Metrics to Improve College Choices and Completion. The report describes college affordability and completion challenges and provides detailed policy options for Congress and the Obama Administration on making federal aid more effective, more efficient, and simpler for students and parents to use. We produced a five-part chart series to highlight major figures from the report and have compiled them into a single InFocus posting to celebrate Tax Day!
Funded as part of the Gates Foundation's Reimagining Aid Design and Delivery (RADD) project, our paper focuses on two areas that have received scant attention from federal policymakers: tax-based student aid and the use of performance metrics in aid policy. It's little known that tax-based student aid now accounts for nearly half of all federal student aid outside of loans and has more than quadrupled in recent years. Unfortunately, as currently designed, tax-based aid likely has little effect on college access or completion. Moreover, many low- and modest-income families cannot use tax-based student aid; for those who do, the tax aid doesn't reach them when they need it most -- when college bills are due -- but months later.
Read More>> RADD Chart Series Wrap-Up