<p>mini...
The proposal is for a "fully refundable" credit. That means that, like the earned income credit and the additional child tax credit (for example), you would get a check (in this case $4000) if you would otherwise pay no taxes.
Regardless, it isn't going to happen.</p>
<p>Keep in mind that this is one aspect of Obama's plans and budget. It doesn't add up to that much more from everyones pocket. It could mean pulling funding from other areas (ie. military) to fund this initiative.</p>
<p>I LOVE the idea of eliminating the FAFSA and streamlining the FA process. </p>
<p>Hehe, Obama should use some antitrust legislation against the College Board...</p>
<p>While commiserating over college costs with several hard-working parents at a soccer game a few months ago, several of us came up with the following federal funds for college asset test.</p>
<p>The general theme was that aid should be directed to those that are making the decisions throughout their lives that ultimately lead to self-sufficiency; like starting to save early for college and foregoing luxuries.</p>
<p>In general, everyone agreed that individuals should be taking steps, day-by-day, to reach the goal of self-sufficiency. Determining what a luxury is...well there's the rub. </p>
<p>I suggested the 'HDTV test' as metaphor and a possible approach. Everyone agreed that an HDTV was a luxury as opposed to an everyday necessity. (Ok, almost everyone...one dad justified his HDTV by cancelling his Reds season tickets and using the 'savings' money to purchase an HDTV and watch the games from home instead ;) . Incidentally, as of last year more than 60</a> million HDTVs were sold in the U.S. Assuming one per household and 103</a> million households, that would leave us/U.S. with about 58% of households with a 'luxury'-style television.)</p>
<p>One parent even suggested that federal bureaucrats be allowed to visit homes receiving federal aid to determine if they had an 'HDTV' in an attempt to assess funding eligibility. A bit harsh for some, but not far off the mark from what everyone agreed should be the true spirit of the FinAid distribution process.</p>
<p>I have a $59 "Konka", and it works just fine - I doubt that HDTVs get any better shows than I do.</p>
<p>But a "fully refundable credit" still pushes the prices for tuition higher - it is free money to be captured by state institutions. And it will make it that much easier to capture full-pay OOS students at the expense of low-income in-state ones. Again - it is a Republican plan.</p>
<p>Well I am a Republican, maybe it is a republican plan. I am not sure where I personally stand.</p>
<p>I would be interested to see what general ideas mini has.... I find idea exchange a good thing (as opposes to our current political atmopshere of name-callin--on both sides)</p>
<p>I agree that the effect of government money via tax and other policies is to push tuition higher.
As an aside, I don't think people understand that the difference between a Pell Grant and a refundable tax credit may be more than technical. A Pell Grant is a pure transfer payment to a college from the federal government. In my son's case (and I think in most cases) his Pell and SEOG grants had no effect whatsoever in making college more affordable for either him or his family. These moneys weren't treated as an "outside scholarship" that would have had the effect of reducing our EFC. Instead they replaced dollar-for-dollar grant money his well-endowed school would have spent. I don't think colleges are as efficient at scooping up education tax credit money.<br>
As for public universities, I think xiggi suggested that the Cal system admissions policies are designed to collect those Pell and SEOG bucks.</p>
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I think xiggi suggested that the Cal system admissions policies are designed to collect those Pell and SEOG bucks.
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<p>Small nit, but my good friend's suggestion is incorrect. The UC system admissions are designed to guarantee admission to anyone who meets the minimum UC admission requirements; target is the top ~12.5% of HS graduates statewide, based on "a-g" course academics and test scores. Whether these kids qualify for federal money is not an admissions criteria, but gpa and test scores sure are. OTOH, Cal and UCLA do give admission tips to low income kids, but it just means that they are taking kids who might otherwise have attended a "lower" UC.</p>
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I doubt that HDTVs get any better shows than I do.
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An HDTV definitely gets 'shows' 'better'!</p>