Congress has passed the final version of the proposed tax reform changes, maintaining the tax benefits that helped assist both educational access and affordability.

​

Nick Jones, provost and executive vice president of Penn State, stated after the passing of the new tax reform that affects students in higher education that, “I want to applaud the tireless efforts of many people, particularly our government and community relations team, as well as faculty, alumni and everyone who spoke up to let our elected representatives know how vital support of higher education is to individuals and in the prosperity of our nation."

​

The tax reform itself was originally set to terminate many of the existing education-related tax benefits. These tax benefits include the student loan discount where those who take out loans are permitted to deduct up to $2,500 in student loan interest, qualified tuition reductions where the tuition reductions of employees are excluded from taxable income tuition reductions. These original tax benefits also include both the American opportunity tax credit and the lifetime learning credit. The American opportunity tax credit ensures that individuals will still be able to receive a tax credit of up to $2,500 per year for qualified tuition and related expenses with the lifetime learning credit mainly provides a credit of up to $2,000 per taxpayer for qualified tuition and related expenses. There is also educational assistance programs with allowed employees to exclude up to $5,250 of educational assistance provided by an employer in their taxes. The tax reform was also intended to affect the current law that excludes tuition reductions from taxable income for graduate teaching and research assistants.

​

Penn State, along with universities nationwide, took a strong stance against the tax reform. President Eric J. Barron shared a statement as the U.S. Senate began to consider it's own version of the Tax Cuts and Jobs Act passed by the U.S. House of Representatives on November 16, 2017. In an address to the Penn State Community, Barron stated that "Proposed changes would increase the cost of higher education for our students and employees, now and into the future. I want you to know that my administration is actively working with members in the House and Senate to ensure Congress is fully aware of the potential impacts on Penn State students and employees." His sentiments highlighted the effects of the act on graduate students, employees and their children, and student loans and philanthropy. President Barron made a call to action on behalf of Penn State--the efforts were found successful.

​

Congress has decided to refrain from reauthorizing the tax provision that authorized above-the-line deductions for qualified tuition and related expenses for higher education up to $4,000 were included in the tax provision that expired January 1, 2017.

​

“Without the overwhelming support of our extended community at Penn State and institutions across country, the ability of students to attend college and afford an education could have been severely hampered.” Nick Jones stated, where he continued, “The significant support our Vice Provost for Graduate Education and Dean of the Graduate School Jean Vasilatos-Younken, faculty and our graduate students, was instrumental in keeping that benefit in place.”