President Clinton announced last week that he will encourage Congress to pass legislation to make college more affordable for both students and their parents.
Clinton's plan incorporates ways to help both low-income and middle-class families by using tax breaks and direct financial aid.
Both the Lifetime Learning Tax Credit, which benefits third- and fourth-year students, and the Hope Tax Credit for first- and second- year students will be supplanted by the more comprehensive College Opportunity Tax Cut. This program could save up to $2,800 in taxes for students.
The Clinton administration estimated the proposal will cost $30 billion over 10 years.
Clinton made several other proposals to accompany his tax credit plan.
He proposed increasing funds for the Supplemental Educational Opportunity Grant Program by $60 million, raising their total budget to $691 million. The grant program provides financial aid scholarships.
Clinton also proposed raising the maximum Pell Grant from $3,300 to $3,500.
One proposal would give GEAR UP, a program that provides support to low-income middle school students, a chance to attend college in the future.
Another proposal would increase a tax break for employer generated educational assistance.
Clinton also urged the repeal of the 60-month limit on the tax deductions that citizens can make on the interest they pay on their student loans.
A spokesman for Sen. Charles S. Robb (D-Va.) expressed Robb's support for the proposal, saying "overall the President's proposal is a good one to increase students' ability to pay for higher education, and it especially helps students help themselves through work study."
Clinton also proposed adding $77 million to the budget of the College Work-Study Program, increasing the budget to $1.01 billion. The goal for this program is to extend service to one million students.
Although Clinton's words seem to be good news for many students, Larry J. Sabato, government and foreign affairs professor, was not optimistic about the fate of the proposals.
"If I were students I wouldn't go out and have a party or anything," Sabato said. "Most of what Clinton proposes does not pass in the Republican Congress."
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