Education benefits from the Stimulus Plan

Again, it has been a busy couple of weeks. While the President's economic stimulus package seems like a distant memory and old news, there were several education benefits built into the stimulus package which I felt was important for you to read about.

Title IV Programs: For Pell Grant, slightly more than $17 billion is provided to increase the maximum award to $5,350 in 2009-10 and $5,550 in 2010-11, and eliminate the Pell Grant shortfall. Work Study received an additional $200 million.

Health Resources and Services Administration: $300 million is budgeted for the National Health Service Corps, which provides scholarships, loans, and loan repayment programs for behavioral and mental health care providers, primary care physicians, and other health professionals. Another $200 million is divided between health professions training programs and HRSA Nursing Workforce Development programs such as the Nursing Loan Repayment Program.

American Opportunity Tax Credit: The law provides approximately $13.5 billion for a temporary, more generous replacement of the HOPE tax credit for 2009-2010 and 2010-11. The amount of the credit is up to $2,500, of which up to 40 percent ($1,000) of which is refundable. The modified AGI phase out starts at $80,000 ($160,000 for a joint return).

529 Plans: For 2009 and 2010. the law temporarily defines computer technology and equipment, including Internet access fees, as "qualified higher education expenses" for 529 plan purposes.

I hope this information has helped and as more becomes available, especially as we get closer to tax reporting, I will hgihlight the new American Opportunity Tax Credit.