[xtypo_dropcap]A[/xtypo_dropcap] college tuition tax credit for middle-class families was extended by the U.S. Senate on Wednesday to the end of 2012, Sen. Chuck Schumer of New York announced on his website.
The tax credit allows families to take the total amount spent on college tuition off of their tax bills, according to the Wall Street Journal. However, last year less than half of eligible families cashed in on the tax break.
According to Sen. Schumer's statement, American college students, especially those from middle-class backgrounds, are facing ever-growing tuition costs and fewer ways to pay for them without accruing mountains of debt.
“College tuition has skyrocketed across the country in light of rising costs,” he said in a conference call. “With the recent tightening in the student loan credit market, more students of all income levels … are borrowing in higher amounts than ever before. Others are forced to make tough decisions about whether or not higher education is feasible.”
The college tuition tax credit extension, which was originally part of the 2009 stimulus bill, will cost $18 billion and will last for two years, the Journal reported.
“By extending the tax credit for another two years, we will not only put thousands of dollars in the pockets of middle class Americans with kids in college, we will be providing them with the security of knowing that tuition will be a little bit more affordable not just next year, but the year after as well,” Sen. Schumer said.
