New Rochelle, NY – As middle-class families in the Lower Hudson Valley are being squeezed by rising tuition costs, high local property taxes and increased housing prices, U.S. Representatives John Hall (D-NY19) and Nita Lowey (D-NY18) today discussed their efforts to push for more tax breaks to help families paying college costs.  Standing outside the Robert V. La Penta Student Union at Iona College in New Rochelle with college students and Iona College President Brother James Liguori, the representatives said that Hudson Valley incomes are not keeping pace with the rising costs of living, causing more of a burden for families paying for college.

 

Data released last week by the Census Bureau shows the median household income in New York rose by less than 1% from 2000 to 2006, leaving New Yorkers making today basically what they made almost a decade ago.  At the same time, health insurance, gasoline, home heating, local property taxes and college costs have all increased, squeezing working families on all sides.

 

College tuition and fees have soared since the 2000-2001 school year, when the average cost of tuition, fees, room and board at a public college in New York was $10,254.  Four years later the cost jumped to $12,441.  At private schools the numbers jumped from $25,171 to a whopping $30,907 in the same period.  That’s over a 20% increase in just about the time it takes a student to graduate.

 

“When the costs of living are rising, but income is basically staying flat, the door is slamming shut in the face of middle class families that have worked hard, saved, played by the rules, and yet are still faced with the prospect that they might not be able to pay for their kids college,” said Hall.  “No parent should have to choose between paying for their child’s tuition or their health insurance.”

 

“The rising cost of college tuition is making it difficult for students to afford the education that they deserve,” said Lowey.  “Congress has already begun taking steps to make college more affordable by raising the maximum Pell Grant and by lowering the interest rate for student loans, but we must do more.  Tax deductions for higher education tuition, room, board, and fees would help ensure that every student who wants to attend college will have the opportunity to do so.”

 

Earlier this year, Lowey introduced the Deductibility and Incentives to Promote Learning Opportunities and Maximize Assistance Act (DIPLOMA Act), which Hall announced his co-sponsorship of today.  The DIPLOMA Act would give families tax breaks through two options:  Couples making up to $160,000 and individuals making up to $80,000 could deduct all college-related expenses including tuition and fees, room and board, and books.  Families exceeding those income levels could take advantage of a fully refundable Earned Tuition Tax Credit for college-related expenses.  This refundable tax credit would cover all expenses up to $1500 and half of all expenses up to an additional $2500.  The DIPLOMA Act would also help recent graduates by allowing them to fully deduct both the principle and interest of their student loan payments for five years after graduation.

 

Congress is scheduled to reauthorize the Higher Education Act, the flagship piece of legislation providing college aid that includes authorization for financial aid programs, including the Pell Grant.

Pell Grants are need-based aid intended to be the foundation for all federal student aid awarded to undergraduates, but have been weakened in recent years.  Ten years ago, the Pell Grant covered 45% of public college costs in New York.  By 2004 that number had dropped to 33%.

 

Lowey and Hall said that in the Higher Education Act reauthorization they will be working to strengthen financial aid, teacher training and aid to colleges.

 

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