Parents and students already struggling to pay for college could be dealt another significant setback under the tax plan House Republicans approved last week.

The proposal would eliminate codes that consider many assistance programs exempt from taxable gross incomes.

That includes qualified tuition reductions colleges and universities often provide that allow employees, their spouses or dependents to enroll tuition free or at a reduced rate. Such reductions are generally tax free for undergraduate courses.

And the tuition help isn’t necessarily limited to the school where a parent works.

Many schools are in exchange programs, which let employees apply their tuition waivers at another participating institution. Some universities even cover costs at their local community colleges for an employee’s dependent.

That could quickly impact tax bills.

The average four-year public university has in-state tuition and fees of about $10,000, and private universities an average of $35,740, according to the College Board.

At Southern Methodist University, for example, the sticker price is about $52,500 for tuition and fees. But students rarely pay that much as many receive scholarships or some kind of financial aid that reduces the cost.

Graduate students would be hit the hardest because they receive tuition reductions tax-free in exchange for working as as instructors or research assistants.

About 145,000 graduate students and 27,000 undergraduates rely on tuition reduction programs, according to the American Council on Education. Proponents of the plan suggest that schools could still ease graduate students' tax burdens by reclassifying the reductions as scholarships.

Proposed changes to the tax code would also apply to the wider workforce, affecting anyone taking advantage of a tuition assistance program through their job. Companies routinely offer them to gain a competitive edge in recruiting and retaining employees as well as to train workers in new skills.

Such programs allow employees to receive up to $5,250 tax-free toward their education.

But the House plan would count that payment toward an employee’s income, making it taxable.

The Senate version of the tax bill doesn't include revisions to tuition assistance programs.

Other college-related changes in the House proposal include:

Eliminating the Lifetime Learning and Hope Scholarship credits

Extending the American Opportunity tax credit to a child's fifth year in college at a reduced rate. Currently, parents can get up to $2,500 per kid for the first four years of that child's college enrollment.

Cutting the student loan deduction.

Allowing families to use up to $10,000 from education savings accounts intended for college expenses toward tuition at elementary and secondary private schools.

axing university and college endowments.

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