Tax perk may ease tuition sting

Struggling college students: Financial aid from a tax perk could await.

A bill is in the works to give students or families paying college tuition a $300 income tax credit — even if the family's or individual's tax bill isn't that high. Those making less than $30,000 a year would be eligible under the bill requested by Sen. Gregory Bell, R-Fruit Heights.

The bill could cost $9 million to $20 million under early estimates, Bell said.

Bell says the bill would ease the burden of rising college tuition and give students more opportunity to enroll in and complete college without taking on big debt.

"I think part of the problem is we've not ever been a culture that's had to save for college," Bell said. "And now with tuition being $2,000 to close to $4,000 a year, you just can't pay as you go."

Higher education bosses like the idea.

"There is financial aid for the very poor students," said Amanda Covington, communications director for the Utah System of Higher Education. "This is really targeted to help those in the middle class, those who have working families struggle to put kids into college. We are supportive in that effort."

Utah is experiencing a drop in the number of students going directly from high school to college, a rise in college tuition and fewer students completing degrees. Higher education bosses have mounted a campaign to turn those trends around.

Bell says 30,000 people could be eligible for the tax credit he proposes.

The bill could cost $9 million, or, under an early estimate from the Office of the Legislative Fiscal Analyst, as much as $20 million, Bell said.

"We're still working on some details," Bell said.

The money would come out of money earmarked for public schools and colleges.

"It's a reduction (of funds). We don't have to fund it, we don't have to appropriate for it," Bell said. "It goes to the students. Instead of giving a $300 amount to every university president ... this goes into the student's pocket."

Public education officials have traditionally opposed measures that would send public dollars to private institutions, as has been the aim of tax credits for private school tuition over the past seven years. Many have noted Utah schools already receive less per-student money than any other state in the country.

But State Board of Education chairman Kim Burningham views Bell's proposal holistically.