President Barack Obama has called on Congress Wednesday to extend the package of tax breaks for college students which were integrated into last-year’s stimulus package. He argued that the tax breaks give relief to middle-class families who are struggling financially and finding it hard to cope with the increasingly expensive cost of tuition.
At a news conference in Rose Garden scheduled for later today, the president will be joined by several students from the community and their families to showcase the benefits of the tax breaks, called the American Opportunity Tax Credit.
The package, which was a part of the stimulus package last year, provides as much as $2,500 per year to families of students who are getting college educated. The tax credit has expanded aid to around 12.5 million students who joined the program in 2009. This increased their annual benefit average to $1,736, which is an estimated 75 percent above previous assistance programs such as Hope Credit.
The college program, like a number of tax breaks, is set to expire in January 2011, but so far Congress has taken little interest in it. Officials are hoping that Congress, when it returns after the November 2 elections, will bring the issue into the fold of discussions around the other tax break extensions.
"Our hope is to get this extended in a way that's practical and timely, but we're not going to try to prejudge the congressional strategy for doing so,” said Treasury Secretary Timothy Geithner.
