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Id like you to meet The StudentsBoth Joe and Jane are 28 years oldThey live in Genesee County They have been married for 5 yearsThey have a 3-year old daughter, Mary

More about Joe and JaneJoe went into construction after high school but unfortunately has been laid off more than employed for the past 4 years

Jane is a paralegal, attending MCC at nights working on 3 + 1 transfer program

Joe and Jane in 2011This was an especially rough year for the Students

Joe was laid off most of the year and and had to collect nearly $11,000 in unemployment benefits

$11K = almost 1/3 of theirHousehold Income Financial Aid Jane applied for a Pell Grant at MCC Unfortunately she was ineligible due in part to the fact that the EFC Formula considered their family earnings and Adjusted Gross Income of $39,787 too high for a family of 3

Fortunately, MCC offered a payment plan that helped tremendously

Pell Grant

Tax Time March 2012 In March, 2102, the Students filed their tax return Due to their income level and a new Higher Education Tax credit, the Students were delighted to receive a refund of $2,178 for their tuition

Net Tuition Cost for Full Time for 1 Year at MCC = $535Comparable to Tuition and Fees in 1980-81 or $21/contact hour More in 2012 Joe and Jane were advised by their CPAIf Jane continued to attend MCCJane should reduce her federal withholdings from her job to receive this much needed refund throughout the year instead of tax-timeJane made the payroll adjustment as advised

Reduce withholdings

CPA More in 2012

Tax Year 2012CPA calculated that tuition/fee amounts = $2,957 for 24 contact hours Higher Education Refund (from improved tax credit) = $2,239Net tuition/fee for full-time = $718 or $29/contact hour or 1983-1984 rates

American Opportunity Tax Credit (AOTC) How did they get this?

Pell American Opportunity Tax Credit (AOTC)Pell for Most Everyone Else Maximum Award$5,550$2,500EnrollmentSliding Scale up to full-time At least Half TimeIncome LimitsExpected Family ContributionModified AGI< $80,000 Single < $160,000 MFJProgram of Study Degree or Certificate-Accredited Institution Degree or Certificate-Accredited Institution Can be used for Tuition, fees, books, equipment, supplies, leftover can be for living expenses Tuition, fees, books, equipment, suppliesLength of Award6 years4 yearsOther Eligibility Not convicted of a felony drug offense Not convicted of a felony drug offense

Available Financial Aid Pell and American Opportunity Tax Credit (AOTC)Estimated - $14.3 Billon available annually for AOTC $ IncreaseAOTC Refundable Credit 12 Hours Total tuition/fees increase 2008-2009 18.42 (475.44)2009-2010 51.11 (495.88)2010-2011209.95 (579.72)2011-2012137.66 (634.79)416.79(2,185.83)Tuition Increases and Amount Refunded from the AOTC (1,769.05)Tuition Increases and Amount Refunded from the AOTC

$ IncreaseAOTC Refundable Credit 24 Hours Total tuition/fees increase 2008-2009 35.10 (826.32)2009-2010 97.32 (836.05)2010-2011340.73 (870.12)2011-2012256.60 (895.78)729.74(3,428.28)(2,698.54)(2,782.79)$ IncreaseAOTC Refundable Credit 30 Hours Total tuition/fees increase 2008-2009 43.44 (880.05)2009-2010 120.42 (892.09)2010-2011406.30 (932.72)2011-2012316.07 (964.33)886.22(3,669.19)Tuition Increases and Amount Refunded from the AOTC

Questions or Comments?For More Information:Larry Gawthrop, Chief Financial Officer 810-762-0525, larry.gawthrop@mcc.edu