Is Grad Students Frightened About the GOP Tax?
The Democrats on the House Ways and Means Committee released their long awaited, well publicized, and anticipated proposal to reform the tax system today. They called it a “plan for a fairer economy”. However, what has been reported about the plan is very scary for the upcoming grad students.
This is especially true for graduate students who are already struggling with large student loan debts that they need to pay back. The news is especially frightening because President Obama and Congressional representatives have promised that the proposal will help lower the burden of taxes on students. They hope it will help graduates start paying off their loans by freeing up money to go to school or pay for their own education.
However, it looks like the administration did not make good on this promise for graduate students. In fact, the administration may have made the students’ lives even more difficult by imposing a tax on the university which they would charge them if they wanted to take a leave. Many grad students are freaking out about this move, as it makes it even harder for them to get the financing they need to attend graduate school programs.
This has caused students to wonder how much money the tax bill will hurt them financially. The answer is quite a bit. It will almost entirely depend on the graduate student’s finances.
If a graduate student’s future earnings potential is poor, this means they will have a hard time paying off their loans. This will almost certainly impact how much they can afford to pay off their loans in the future.
On the other hand, if a graduate student has a lot of disposable income, then they can save a lot of money on their tuition costs by delaying payments. This means the government won’t be getting the money back and will have to give the money to the student in the form of grants and tax credits.
For students with very poor future income prospects, deferment will be the most expensive course of action. They will have to pay interest and fees on their loans for years if not decades before paying anything at all.
So many grad students are freaking out about the GOP tax plan. and it is only going to get worse.
Some people are calling the tax bill at the end of an era in higher education. With less federal funding than ever before and less tax credits available to grad students, some graduate students are finding that they have to choose between paying back their loans and going to college. Not many graduate students would choose to go to school for just a few years to be paid less money for their education, but the administration is taking advantage of this situation.
As a result of this situation, more money is being cut from the university in order to stay afloat. and there is less money for graduate student’s salary to cover these expenses. In addition to the salary cuts, many graduate students are finding that they have to take on more debt to pay for books, travel, transportation, and housing.
All of this student debt is driving a huge wedge between the grad student and their families. With this debt, it looks like many graduates will have to postpone their family vacations.
The graduate student loans are one of the biggest culprits behind this situation because many grad students who cannot afford to take out subsidized loans will find themselves paying hundreds of dollars more on the cost of their education each month. It may be enough to push them into a deep debt that they never pay off.
If the administration is not able to change the tax plan, then this could set off a domino effect that leads to more grad students struggling to pay for college. As long as the administration can do nothing about it, this will continue to happen. This is why so many grad students are freaking out about the top tax.
