Federal Grants, Tax Breaks Help Reduce Tuition Pain – US News and World Report

Federal Grants, Tax Breaks Help Reduce Tuition Pain – US News and World Report

  • average published in-state tuition for full-time students at public universities rose by $470 to an average of $7,610 for the fall of 2010, the typical student ended up paying only $1,540 out of pocket
  • average private college raised its tuition by $840 to $27,290, but the average private college student actually paid $11,320 in tuition after scholarships and tax benefits were subtracted
  • full-time students at community colleges, where the average sticker price rose just $120 to $2,710 this academic year, typically got enough aid to cover all their tuition and another $670 for books

Main reason for the decline in net price:

  • since 2008, the maximum size of the federal Pell Grant has risen by $819 to $5,550
  • number of students who qualify for the federal grant has skyrocketed: 7.7 million Pells were awarded last year, up from 6.2 million in 2008, and 3.8 million in 1999
  • as a part of the stimulus, the government created the $2,500 American Opportunity Tax Credit, which was claimed by about 12 million families last year

About a third of the full-time students, or about 3.8 million people, didn’t receive scholarships or tax benefits, and so paid sticker prices

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