INDIANAPOLIS – A new tax plan proposal by the U.S. House could cause more college students to seek financial help.
Graduate students who receive tuition waivers would be forced to pay taxes on their assistance, which would offset $1 trillion worth of cuts to American businesses, according to the U.S. House proposal.
Several students at IU said the tax plan could make pursuing an advanced degree too expensive.
The tuition assistance waivers allow many graduate students at IU to play an active role on campus by teaching or taking a job. In exchange, the school waives the cost of credit hours.
"It is extremely helpful. Without that, my debt would be almost unmanageable at this point,” said student Adam Reneker.
Law student Shea Smock said she would need to find more financial help if the tax plan were implemented.
"I'd be getting taxed on over $50,000, and I don't see any of that money from the university,” said Smock. “The amount we get paid is poverty level already. If we're going to get taxed, we'll have to take out student loans."
IU officials said they’re afraid the tax plan would deter students from enrolling in an advance degree program.
"We want the best and the brightest to come to IU,” said Chuck Carney, of IU. “We certainly feel like having this provision in the bill would depress those numbers but certainly provide a disincentive."
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