The implicit taxes from college financial aid

• 成果类型: Article
• 署名作者: Dick, AW; Edlin, AS
• 署名单位: University of California System; University of California Berkeley; University of Rochester
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(97)00018-2
• 发表日期: 1997
• 页码: 295-322
• 关键词: implicit taxes; college financial aid; savings incentives

摘要

Families who earn more or who heed the ''experts'' advice and save for college typically receive less financial aid. The financial aid system therefore implicitly taxes both income and assets. We use NPSAS aid award data to estimate these implicit taxes, and find that at average-priced colleges the marginal-income tax ranges from 2 to 16% and the marginal asset levy from 8 to 26%. A typical family loses aid worth about $11 000 at average-priced colleges and $15 000 at expensive colleges by accumulating an extra $50 000 in assets. (C) 1997 Elsevier Science S.A.