Obama’s $4,000 Tax Credit For College Students

This is a guest post by Simon Zhen. Simon is the blogger behind Realm of Prosperity, where he regularly writes for young adults who want to prosper in life. He has been kind enough to write a post while I’m on my 2nd anniversary. 

The only time that most college students care about politics is when there is a chance to make some money. I’ve definitely refrained from having any involvement in politics but I came across interesting information when researching the Obama-Biden administration for class.

If you haven’t noticed from the title of the post, Obama plans to give a $4,000 tax credit for all college students who complete 100 hours of community service. We must start raising awareness to high school students heading for college and current college students. Financial aid, grants, and scholarships seem to always fall short of being able to give students a free ride for higher education. They need to know that they will have another option when it comes to paying for college.

Obama’s “America Serves” Plan

Here is the gist of Obama’s “America Serves” plan:

Obama and Biden will call on citizens of all ages to serve. They’ll set a goal that all middle school and high school students engage in 50 hours of community service a year, and develop a plan for all college students who engage in 100 hours of community service to receive a fully-refundable tax credit of $4,000 for their education. Obama and Biden will encourage retiring Americans to serve by improving programs available for individuals over age 55, while at the same time promoting youth programs such as Youth Build and Head Start.

Too bad I’m graduating this school year because I’d love an extra $4,000. For future college students, this “paid community service” translates to a $40/hr job. It would be stupid not to do it. Plus, you’d be doing a good thing while gaining a nice addition to your resume.

Possible questions of the plan:

• Where is the money coming from? We ask this question of all government policies, especially in our current economic condition. There are millions of college students who may benefit from this plan and it would cost billions to government if this plan goes through and students actually take advantage of it.

• Why can’t those who aren’t college students get something for community service? There are those who work full-time and still commit to serving the community. Some may believe that they should be entitled to a similar reward to provide tax relief. Certainly, if there was an incentive for non-students, there would be a widespread increase in community service throughout the nation.

Despite questionable support for the plan, it would great for college students. So, high school students, current college students, and parents should stay on alert and pay attention to the materialization of Obama’s plan because this affects them the most. The $4,000, or any amount, would be crucial in removing student debt and paving a more prosperous path when they graduate.

Photo credit: Water Watch

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