Yale Law SchoolUpdate (November 7): Vox reports another effect of the tax plan on higher education: taxing the tuition wavers some graduate students receive in exchange for working as teaching or research assistants. This Forbes contributor calculates the likely costs to students attending schools of various tuition levels.
The tax plan proposed by congressional Republicans late last week (November 2) would affect higher-education finances in disparate ways, analyses by news organizations and advocacy groups have found. The changes, if enacted, would be largely bad news for colleges and universities, and for some of their students.
“They are cutting resources with no plans to reinvest that money to help people better afford higher education,” Jessica Thompson, policy and research director at nonprofit The Institute for College Access and Success, tells Consumer Reports. “This will raise the cost of borrowing for many people and raise the cost of college.”
The proposal would eliminate the current tax deduction for interest paid on federal student loans. The deductions, while small, are claimed by about 12 million people ...
