Support a legislative change to require mandatory use of institutional certification of private loans by lenders. This will help ensure that students and families fully utilize state and federal grants and less expensive financing options such as subsidized and unsubsidized Stafford Loans and PLUS Loans before securing more costly private loans.
Support the extension or permanency of the American Opportunity Tax Credit (AOTC) as established in the American Recovery and Reinvestment Act in order to assist needy students, which provides a tax credit up to $2,500. Taxpayers receive a tax credit based on 100 percent of the first $2,000 of tuition, fees and course materials paid during the taxable year, plus 25 percent of the next $2,000 of tuition, fees and course materials. Up to a maximum of 40 percent of the amount of the credit is “refundable.”
Advocate for a provision in AOTC that exempts Pell Grants from being applied toward tuition and fees used to determine the tax credit, in order for low-income individuals to take full advantage of the credit.
Support the establishment of a federal tax exemption for loan forgiveness proceeds for borrowers in the Income Contingent Repayment and Income Based Repayment programs.
Support the permanency of the Individual Retirement Account (IRA) Charitable Rollover, which expired at the end of 2011, permitting individuals 70½ and older to transfer up to $100,000 from an Individual Retirement Account (IRA) tax-free to charitable and other nonprofit organizations. This will help colleges and universities generate new or increased contributions to maintain benefits to students, particularly financial aid.
Advocate for direct support to public institutions of higher education that enroll a high percentage of low-income individuals.
Support funding directed toward states in their efforts to align P-12 and higher education curricula, standards and assessments to ensure that students are equipped with the knowledge and skills necessary to succeed in postsecondary education and the workforce.
Support continued appropriation levels for Title III of the Higher Education Act, which supports the development and strengthening of: Historically Black Colleges and Universities; Predominantly Black Institutions; American Indian