College Costs and the Election: Who’s Got you Covered?

October 10, 1:22 PMCollege Admissions ExaminerLauren Starkey

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If you’ve got a child in high school, you’re watching politicians with an eye on their responses to the staggering cost of a college education. There is some good news to report. According to their websites, both John McCain and Barack Obama see a fix needed for our system of higher education.

The presidential candidates are in agreement on two issues, citing the complicated federal financial aid forms and tax credits as areas for reform. John McCain says he will simplify both, but does not offer any specific solutions for either. Barack Obama plans to add a box on the federal tax return that can be checked to allow the Internal Revenue Service to share income information, thus eliminating the need for cumbersome financial aid forms.

On the tax credit issue, McCain is aware that many families who could benefit from credits don’t apply because they’re not aware that they’re eligible. He proposes simplifying the existing system to make it easier for everyone who qualifies to get the benefits. Under the current plan, some families are eligible for a $4000. credit; however that amount remains the same each year no matter how many members of the family are in college. There is also a Hope Scholarship for the first two years of college that can add up to $1800. per year per student, and a Lifetime Learning Credit of 20% of tuition up to $2000for attendance beyond two years.

Obama has a five-part plan for reducing college costs, including a $4000. American Opportunity Tax Credit; it’s the same amount as the current credit, but promises to be easier to get and available when tuition is due. The tax credit also requires 100 hours of public service annually. An increase in the maximum Pell Grant and new system of grants to strengthen community colleges are other highlights of Obama’s plan.