Here are four ways the new law potentially impacts college affordability — as well as four proposed changes averted late in the process. Though this change doesn’t directly impact the cost or affordability of college, 529 plans are a core component of the college savings strategy for many families. But the new tax law eliminates —at least from 2018 through 2025 — a borrower’s ability to deduct the interest on a home equity loan. College Endowments Take a HitBefore this tax law passed, investment income earned by private college endowments was tax-exempt. Another key provision spared in the final version of the new law: the American Opportunity tax credit.

Source: Forbes March 07, 2018 19:41 UTC