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After becoming the President, Barack Obama has laid the required stress on higher education. According to this administration higher education should be accessible to all classes and not only the higher class of society.

It is only then you can look forward to a prosperous United States where most students are able to complete their graduation and can opt for careers of their choice and requirement. Education should work out an investment which is termed as ‘secure’ and not a ‘luxury’.

Cost of College

The cost of colleges should be a responsibility which is shared between the colleges, universities and also the state and federal government besides the students and their families. There has been a historic investment made by this administration for higher education. Few of them include the raising of the Pell Grant award to nearly $900, loan repayment programs and also American Opportunity Tax Credit.

Several federal student aid reforms have been implemented that are able to eliminate bank subsidies which are wasteful. You now have an increase of almost 50% of students enrolling for higher education from the lower income group.

American Opportunity Tax Credit

This tax credit can be claimed for expenditure on certain fees, tuitions, and also materials for the
required course. This American Opportunity Tax Credit can be claimed for the expenditure in the initial four years of college. This also includes expenses for books, equipment and supplies related to a specific course which might not be paid by the educational institution. This credit can be given even if you owe no tax. To be creditable for this you need to do the following -

* The required fees for attendance and enrolment at an educational institution which is termed as

‘eligible’.

* The taxable year should be able to relate to an academic year beginning in the same taxable year.

* Or a academic period which starts in the initial three months of the following taxable year.

Expenses for transportation, insurance, room and board, medical expenses do not qualify under this.

Changes in the Pell Grant

Students who are poor can now earn their post-graduate degree faster and without much of a problem with the changes made in the Pell Grant. These changes would allow the students who are qualified for the Pell Grant tap the funds throughout the year which include also summer.

This can help them graduate sooner and be less in debt. Right now, students are offered only two grants in one year to cover the cost of tuition. After this aid is over, they have to cover the tuition fees on their own. But with the changes, a third grant has been approved. This makes it comfortable and easy for those students wishing to finish courses in summer. The Department of Education feels this will help around 70,000 students to complete their graduation.

The administration also intends to create an incentive for students so that they are on track or even
accelerate the progress. Te goal of this incentive is to encourage the students to take 60 credits which are required to finish a degree in two years, or probably the 120 credits required to complete
graduation in a period of four years.