Tax Benefits for Students and Families
NAICU strongly supports the current three-tiered structure of higher education tax benefits, including benefits that help families save for college, pay tuition, and repay student loans.
A frequent criticism is that there are too many confusing and duplicative tuition tax benefits. This was addressed recently when the omnibus tax and spending legislation was signed into law in December 2015. The new law makes the American Opportunity Tax Credit (AOTC) permanent, and phases out the tuition deduction. The permanent AOTC also replaces the Hope Tax Credit, and is more generous. Since the AOTC is only available for the first four years of higher education, the Lifetime Learning credit remains in place to help graduate students and lifetime learners.