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Incentivizing Parental Support for College Tuition through the Tax Code

Michigan State Law Review, Vol. 2013, No. 3, pp. 827-851, 2013

26 Pages Posted: 31 Mar 2013 Last revised: 4 Jan 2016

Margaret Ryznar

Indiana University Robert H. McKinney School of Law

Date Written: March 15, 2013

Abstract

University tuition costs continue to increase, while education continues to be important. Efforts to alleviate this problem must be undertaken carefully as to not simply aggravate the problem. To this end, this Article proposes that parental contribution towards university tuition be treated more favorably by the tax code, and in particular, be treated as tax deductible. Universities already expect parental contributions as part of a child’s financial aid package, and this proposed tax deduction may help fulfill that expectation. Furthermore, this proposed deduction would spare students some reliance on the loan system, including the risk of default. This proposed deduction, finally, may be structured in a cost-neutral way. Specifically, the funds used for this deduction would be the taxpayer funds saved from the decrease in loan defaults and loan interest subsidies, which currently cost tens of billions of tax dollars.

Keywords: tax, tax law, tax policy, deduction, family law, domestic relations, student loans, student federal loans, tuition, college, university, postmajority support, child support, postsecondary educational expenses

Suggested Citation

Ryznar, Margaret, Incentivizing Parental Support for College Tuition through the Tax Code (March 15, 2013). Michigan State Law Review, Vol. 2013, No. 3, pp. 827-851, 2013. Available at SSRN: https://ssrn.com/abstract=2234188

Margaret Ryznar (Contact Author)

Indiana University Robert H. McKinney School of Law ( email )

530 West New York Street
Indianapolis, IN 46202
United States

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