February 24, 2009 | NEWS ARTICLES
Schumer touts new tax break for students, families
By Dan Murphy | The Troy Record
ALBANY — U.S. Sen. Charles Schumer told a crowd at the state University at Albany campus Monday there is an overshadowed “golden nugget” in the newly approved federal economic stimulus package.
That nugget is a new tax break for students and families paying college tuition, which will allow those making up to $180,000 a year an opportunity to deduct up to $2,500 they invest in tuition per student, per year.
“When a young person deserves to go to college and can't because they can't afford it, they lose. Their family loses, but America loses, too,” said Schumer. “That's what we're trying to do today; to help people go to college and help people pay for college.”
Many different benefits to the deduction were highlighted by Schumer, from easing post-collegiate debt to facilitating students to attend graduate school. The newly structured tax break addresses the needs of citizens on both a local and a nationwide basis.
With approximately 97 percent of New Yorkers falling into the financial demographic the new tax breaks are aimed towards, most every person paying for their tuition will be affected. Of the 300,000 families in New York expected to be affected by the deduction, 24,000 of those reside in the Capital District.
UAlbany Interim President George Philip said, “Senator Schumer is truly a tireless advocate and a champion for all New Yorkers.”
One of the biggest perks to the tax credits offered to students is how quickly the funds become available. With the deduction effective this year, current college and graduate school seniors can file even though they graduate in 2009.
A number of parents with students in college were on hand to discuss the tax credits. John Raila of Latham has a daughter attending Coastal Carolina University. Raila has noticed the hike in cost factors over the span of time it has taken his children to go through higher education.
“My oldest daughter is 29 now, and I've noticed a tremendous difference in the amount of money that we spend on college and how much more difficult the process is of getting the money grants out of the school with the tight budget,” Raila said. “We've filled out application after application, and between credit ratings and what they want to give you, it's just a tremendous challenge to get kids through school nowadays.”
Kathy Graham Kelly, of Saratoga, has a daughter at SUNY Oswego. As a member of the middle-class demographic that will receive benefits from the new tax break, she attested to the level of need families and students have for increased tax considerations.
“When we filled out the FAFSA we laughed, because we wondered why we were filling out this form when we knew we wouldn't qualify,” Graham Kelly said. “We are now left with extensive debt that will keep my husband and I from retiring. However, this bill will help people be able to support their children.”
“It's real money,” said Raila. “It's going to make a difference.”
