The final version of the tax bill has some changes to the education-related items that caused a bit of an uproar in previous versions. Here is a quick summary:
A financial aid package often includes work-study as one component. Typically the package includes a dollar sum of work-study income to be used for education costs. It’s up to the student to find a qualifying work-study job once they arrive on campus, and there is no guarantee that such a job is available.
Both versions of the tax bill– House and Senate– include changes to education tax benefits. One area of both change and confusion is college savings plans. The bills aim to consolidate some of the education plans: loans, tax credits and tax-preferred savings accounts.
The Higher Education Act, which oversees federal financial aid programs, is overdue for a reauthorization. The House education committee, led by Rep Virginia Foxx, R-NC, is about to release a draft proposal called the Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act. According to Inside Higher Ed, the proposal includes significant changes in several key areas: