WASHINGTON, D.C. – In a letter yesterday, U.S. Senator Angus King (I-Maine), along with eleven of his colleagues, urged the Obama Administration to work to better inform students and their families about underutilized higher education tax credits made available by the Federal government. In the letter to the Secretaries of Treasury and Education, Senator King and his colleagues asked the Administration to create a simple, easy-to-understand guide to education tax benefits. Additionally, the Senators asked that an estimate of education tax benefits be made available through the federal student aid application process. Increasing awareness of available tax incentives will help students and families plan for college and hopefully reduce the amount of student loans that individuals need to take out. 

“We firmly believe that one of the best investments we can make in our economy is in post-secondary education whether through job training, certifications, or a college degree,” Senator King wrote with his colleagues. “However, more needs to be done to make sure that a higher education is accessible and affordable for all students and their families. That is why we need to make sure that they know about all of the tools available, beyond student loans, to help pay for college – including savings plans, tax credits, and tax deductions… It is our hope that your departments can develop a simple guide to higher education tax benefits that can be circulated to parents and prospective students, school counselors, financial aid administrators, tax preparers, college admission counselors, and any other interested party.”

The full text of the letter can be read HERE.

According to a 2012 report by the Government Accountability Office (GAO), one in six tax filers failed to take the maximum higher education tax benefit available to them. By creating informative tools and raising awareness of tax credits, tax-free savings plans and tax deductions will help make higher education more accessible and affordable for students and their families.

The letter was led by Senator Debbie Stabenow (D-Mich.) and was also signed by Sens. Tammy Baldwin (D-Wisc.), Michael Bennet (D-Col.), Bob Casey (D-Penn.), Christopher Coons (D-Del.), Mazie Hirono (D-Hawaii), Carl Levin (D-Mich.), Jack Reed (D-R.I.), Chuck Schumer (D-N.Y.), Jon Tester (D-Mont.), and Ron Wyden (D-Ore.).

Earlier this year, Senator King and Senator Richard Burr (R-N.C.) released a bipartisan discussion draft of a proposal to reform Federal student loan repayment programs that would make loan repayment more affordable for the middle class by eliminating duplicative repayment options, streamlining eligibility terms, and ensuring that borrowers will never direct more than 15 percent of their discretionary income to their loan payments. For more information, click HERE.

Senator King also played a pivotal role last year in reaching a compromise agreement that prevented student loan interest rates from doubling last summer.

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