Jeff Bingaman: “Senator Smith and I are introducing legislation today that would allow more students in our Nation to take full…”

“Senator Smith and I are introducing legislation today that would allow more students in our Nation to take full advantage of the Hope Scholarship Tax Credit. Since it was signed into law by President Clinton in 1997, the Hope Scholarship Tax Credit has annually helped millions of students reduce the cost of going to college. In 2003 alone, more than 7.3 million college students claimed this and the Lifetime Learning tax credit. This credit, which can be as much as $1,500, has helped families offset the increasing cost of college--costs that have gone up 51 percent at public 4-year colleges, 36 percent at private 4-year colleges and 26 percent at public 2-year colleges over the past decade. Unfortunately, many students and their families are unable to take advantage of the maximum amount of the credit because it is limited to covering ``tuition and related expenses.'' Students that attend colleges with lower tuition costs, such as those at many of our Nation's community colleges, are not entitled to the maximum amount of the credit. As we all know, tuition is just one of the many expenses associated with going to college. Room, board, books, supplies, equipment and fees can be prohibitively expensive for those who attend colleges that have reasonable tuition charges. The bill addresses this inequity, by allowing the Hope scholarship tax credit to cover expenses associated with fees, books, supplies, and equipment.…”