Financial aid expert Mark Kantrowitz discusses the fiscal cliff deal's impact
- The New York Times' college admissions and aid blog The Choice asked Mark Kantrowitz, financial aid expert and founder of Finaid.org, to discuss how some of the biggest provisions of the American Taxpayer Relief Act of 2012, which passed late Tuesday night to avert a plummet over the fiscal cliff, will affect financial aid.
- The deal extends the American Opportunity Tax Credit through the end of 2017 and the Tuition and Fees Deduction through the end of 2013, makes some changes to Coverdell Education Savings Accounts permanent and permanently repeals the five-year limit for deducting up to $2,500 via the Student Loan Interest Deduction.
Kantrowitz also says that since the bill only delays sequestration for two months, failure by Congress to act before March 1 could still result in across-the-board spending cuts that would lead to cuts in the federal work-study program and Federal Supplemental Educational Opportunity Grants, as well as an increase in fees for federal student loans and a cut to the maximum Pell Grant of as much as $400.
From the article:
The fact that the country didn't hurtle off the fiscal cliff is of particular importance to current and prospective college students, as the American Taxpayer Relief Act of 2012, which passed late Tuesday night, will affect student financial aid. We’ve asked Mark Kantrowitz, an expert on financial aid and the founder of Finaid.org, to discuss some of the details of the legislation that affect how students pay for college. ...