Student loan forgiveness in the United States has always been more than a matter of economics. It is a mirror of national politics, reflecting who we believe deserves relief, what we define as public service, and how far presidential power should reach. Over the past three years, the politics of forgiveness have become a new proxy war between ideological camps, reshaping not only who gets their loans forgiven but also how the federal government defines service itself.
The tax reform bill passed by the U.S. House of Representatives, now under review in the Senate, proposes sweeping changes to federal tax regulations, several of which have implications for higher education. Finance expert Jennifer Delaney of the College of Education spoke with News Bureau education editor Sharita Forrest about the possible ramifications for college students and their families.
In the interview, Delaney said imposing taxes on tuition waivers that graduate students receive in exchange for working as teachers or research assistants is a bad deal for students.
“These waivers significantly reduce college costs for these students,” said Delaney, an associate professor in the Department of Education Policy, Organization & Leadership. “Beyond the tuition waivers, many of these students earn low wages and may not receive enough income to pay the taxes that will be imposed.”
Delaney went on to say that there will be significant repercussions for higher education if all of the proposed changes become law.
“These changes are going to negatively impact students and make college more expensive overall. These tax reforms will negatively affect colleges and universities in other ways by limiting some of the things they can do in terms of receiving charitable gifts,” she said.