New stimulus plan offers tax breaks for students
Rachel Spotts
Issue date: 4/8/09 Section: Dixie Sun Link Features
Dixie State College students may soon see an increase in the tuition tax credit from the economic stimulus plan.
The $789 billion recovery package has been getting mixed reactions from people at DSC as to how it will directly affect the college and its students. Scott Talbot, executive director of business services, said the tax credits will benefit the students directly.
"One of the ways in which the money from the recovery package will be used is for tax credits for the students," Talbot said. "Students at Dixie State College will be able to use the tax credits to deduct tuition and other college fees."
According to a February 2009 Associated Press article, the economic stimulus plan has been divided into different areas, including tax breaks. If the families of DSC students purchase a new car, send a child to college, buy a first home, or make the homes they own more energy-efficient, they will receive tax breaks.
Also, the stimulus sets up a $54 billion fund to help prevent or restore state budget cuts, of which $39 billion must go toward kindergarten through 12th grade and higher education.
In terms of higher education, the maximum Pell Grant, which helps the lowest-income students attend college, would increase from $4,731 to $5,350 starting July 1. That would cover three-quarters of the average cost of a four-year college. Academic Vice President Donna Dillingham-Evans said the increase in money for the Pell Grant will help students cover costs at DSC.
"Student financial aid and the Pell Grant will receive more money that will go toward paying for tuition and other school-related expenses for the students who qualify," Dillingham-Evans said.
According to the Associated Press article, the stimulus also increases the tuition tax credit to $2,500 and makes it 40 percent refundable, so the families of DSC students who don't earn enough to pay income tax could still get up to $1,000 in extra tuition help. Computer expenses will also be an allowable expense for 529 college savings plans.
In addition, parts of the $54 billion state stabilization fund, which has $39 billion set aside for education, can be used for modernizing facilities on college campuses, including DSC. There is also an estimated $15 billion for scientific research on college campuses. Funding for the National Institutes of Health includes $1.5 billion set aside for research facilities as well. Altogether, the package spends an estimated $32 billion on higher education.
The details of the economic stimulus bill and how it might directly affect DSC are still unknown to many people. Lecia Langston, economics adjunct instructor and Utah economist, said it is still too early to know where exactly the money will go.
"The bill is too broad, and there isn't enough information out yet about it," Langston said. "Although the recovery package does have benefits for the students, it is difficult to know specifically how it might affect Dixie State College."
The $789 billion recovery package has been getting mixed reactions from people at DSC as to how it will directly affect the college and its students. Scott Talbot, executive director of business services, said the tax credits will benefit the students directly.
"One of the ways in which the money from the recovery package will be used is for tax credits for the students," Talbot said. "Students at Dixie State College will be able to use the tax credits to deduct tuition and other college fees."
According to a February 2009 Associated Press article, the economic stimulus plan has been divided into different areas, including tax breaks. If the families of DSC students purchase a new car, send a child to college, buy a first home, or make the homes they own more energy-efficient, they will receive tax breaks.
Also, the stimulus sets up a $54 billion fund to help prevent or restore state budget cuts, of which $39 billion must go toward kindergarten through 12th grade and higher education.
In terms of higher education, the maximum Pell Grant, which helps the lowest-income students attend college, would increase from $4,731 to $5,350 starting July 1. That would cover three-quarters of the average cost of a four-year college. Academic Vice President Donna Dillingham-Evans said the increase in money for the Pell Grant will help students cover costs at DSC.
"Student financial aid and the Pell Grant will receive more money that will go toward paying for tuition and other school-related expenses for the students who qualify," Dillingham-Evans said.
According to the Associated Press article, the stimulus also increases the tuition tax credit to $2,500 and makes it 40 percent refundable, so the families of DSC students who don't earn enough to pay income tax could still get up to $1,000 in extra tuition help. Computer expenses will also be an allowable expense for 529 college savings plans.
In addition, parts of the $54 billion state stabilization fund, which has $39 billion set aside for education, can be used for modernizing facilities on college campuses, including DSC. There is also an estimated $15 billion for scientific research on college campuses. Funding for the National Institutes of Health includes $1.5 billion set aside for research facilities as well. Altogether, the package spends an estimated $32 billion on higher education.
The details of the economic stimulus bill and how it might directly affect DSC are still unknown to many people. Lecia Langston, economics adjunct instructor and Utah economist, said it is still too early to know where exactly the money will go.
"The bill is too broad, and there isn't enough information out yet about it," Langston said. "Although the recovery package does have benefits for the students, it is difficult to know specifically how it might affect Dixie State College."
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