Blogs:

The Obama administration extended tax breaks for students benefiting from stimulus package last year. The President made this announcement on Wednesday arguing that struggling middle class families were provided with generous assistance through this generous policy that helps them to a great extent in meeting the ever rising tuition fee costs.

The credit, known as the American Opportunity Tax Credit was taken advantage of by many families, three of whom were present at the Rose Garden where Obama held the news conference.

President stressed on the fact that today, those who did not have the opportunity to go to college faced an unemployment rate that is almost double of those who are lucky enough to be able to afford college education.

He said that higher education is essential for most of the new jobs created and warned that countries that provide better education today will definitely out-compete us tomorrow. President Obama said that it economically imperative to provide our kids with world class education; it is no more just a moral obligation.

As a step towards this goal, President urged the lawmakers to think about how families in our country, whether the times are good are bad, must have enough confidence to invest in higher education and in their children’s and country’s future and for this we must make tax credits permanent.

This tax credit will be hugely beneficial for students who will receive at least $2500 annually to cover tuition fee, books, supplies and other expenses. Treasury Department’s new report states that 12.5 million students took advantage of this credit. The new tax credit will cover all four years of college education as compared to the previous similar programs that were limited to the first one or two years. This credit also includes higher income bracket which means families earning as much as $180,000 will also be eligible now.

According to a financial services company, New Jersey’s client service associate Mary Ellen O’Mealia, her eldest son Sean benefited from support offered by this credit and graduated in the year 2009 from the William & Mary College. She went on to say that her daughter Kelly too graduated from Fairfield recently and this fall, Leigh Anne and Tom, her twins joined the St. Lawrence and Emory University’s respectively.

This seems to be an encouraging trend. Lawmakers are being constantly urged by the administration to choose from taxes on the wealthy and affluent businesses. Though this was proposed in Obama’s budget, it was never actually acted upon.

Today, the only stepping stone to success in career and financial stability is college education. The administration hopes that after the midterm elections to be held on Nov. 2, when Congress returns to Washington, this credit will be included in the legislative discussion.

According to our President, the importance of continuing tax cut cannot be underestimated. This is how we can send a strong sign of support for families looking to provide four year university education for their children. Hope initiatives like this are welcomed and brought to fruition faster in our country. This is vital if we want to remain in the race and regain our spot as the strongest nation in the field of higher education.