House GOP Tax Plan Could Cost Students at Tax Time

DES MOINES, Iowa--  The tax proposal approved by the US House on Thursday promises big for middle class Americans, but it also removes some tax breaks for college students and colleges themselves.

The U.S. house took the first step towards major tax reform Thursday, by passing a bill they say will keep American businesses competitive.

Meanwhile, in Des Moines, Grand View University senior Andy Bagley worries about what the tax cut would do to her.

“Everything will be coming out of pocket for them and it will affect them in the work place too because they will be working twice as hard to make up for what is there's to begin with," Bagley said.

The proposal will tax money given to an employee from an employer to go back to school.

“Current law there is that $5,250 limit up to that is not taxable to the individual, the bill that the house is considering would take away that benefit and the money would now be taxable," Rob Barron Grand View University said.

Grandview University said not only will the tax proposal impact employee tuition benefits but also scholarship support, tax credits and student loan interest.

“Student loan interest tax deduction is something many of our graduate’s benefit from and make use of," Barron said.

The tax cut will disqualify students like Andy Bagley from deducting student loan interest each year.

“I am paying for school completely myself and all of my loans will have interest on them I am going to have to find a job wage that’s higher," Bagley said.

Students and universities will have to see what benefits, the U.S. senate decides should stay or go.

House Republicans say they’re working to have a tax proposal on president trumps desk by Christmas.