Many UAB students will be benefited by various aspects of the American Recovery and Reinvestment Act of 2009 (economic stimulus package) recently passed by Congress. Please review the items below to determine which benefits you might be eligible for and should pursue. Please note: Undergraduate students who wish to receive consideration for Pell Grant funding or federal work-study funding must forward the results of their Free Application for Federal Student Aid (FAFSA) to UAB (school code 001052). If you have not already filed the FAFSA, you may access the form at www.fafsa.gov.
What educational benefits may I receive as a result of the Economic Stimulus Package of 2009?
Pell Grant funds
Pell Grant, a federal entitlement program, has received increased funding in the amount of $15.6 billion allowing for the maximum Pell Grant to be increased, beginning with fall 2009 entering students to $5500 for 2010-011. If you complete the Free Application for Federal Student Aid (FAFSA), you will automatically be considered for Pell grant funding and will be awarded Pell grant if eligible.
Federal Work-study funds
An additional $200 million dollars has been approved for federal work-study programs nationally, a federally-subsidized program that pays 75% of a student worker’s salary paid at minimum wage or higher. If you complete the Free Application for Federal Student Aid (FAFSA) indicating you will accept federal work-study, you will be considered for these funds on a first come-first served basis until the funds allotted to UAB are depleted.
American Opportunity Tax Credit
The American Opportunity Tax Credit, an expansion of the former Hope program, provides for potential tax credits for families paying for college expenses. The tax credit can be up to $2500, depending upon a family's specific situation.
Please see references at: http://www.irs.gov/newsroom/article/0,,id=213044,00.html
For more in-depth information, please consult with your tax specialist or financial advisor.
Computer Hardware/Software purchases as a higher education expense:
Beginning with purchases made in 2009, individuals may use distributions (funds) from a student’s 529 plan to purchase computer hardware and software, and to pay for internet connectivity expenses while the student is enrolled at an educational institution.
Please see references at: http://www.irs.gov/newsroom/article/0,,id=213044,00.html
Not sure if you can take advantage of this benefit? Explore the possibility with your tax specialist or financial advisor and be sure to save all receipts for any computer hardware or software purchase made in 2009 or 2010 for educational purposes!
October 8, 2010