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I’d like you to meet The Students

I’d like you to meet The Students. Both Joe and Jane are 28 years old They live in Genesee County They have been married for 5 years They have a 3-year old daughter, Mary. More about Joe and Jane. Joe went into construction after high school but unfortunately has been

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I’d like you to meet The Students

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  1. I’d like you to meet The Students • Both Joe and Jane are 28 years old • They live in Genesee County • They have been married for 5 years • They have a 3-year old daughter, Mary

  2. More about Joe and Jane • Joe 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

  3. Joe and Jane in 2011 • This 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 their Household Income

  4. 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

  5. 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 = $535 Comparable to Tuition and Fees in 1980-81 or $21/contact hour

  6. More in 2012 • Joe and Jane were advised by their CPA • If Jane continued to attend MCC • Jane should reduce her federal withholdings • from her job to receive this much needed • refund throughout the year instead of tax-time • Jane made the payroll adjustment as advised Reduce withholdings CPA

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

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

  9. Available Financial Aid Pell and American Opportunity Tax Credit (AOTC) Estimated - $14.3 Billon available annually for AOTC

  10. Tuition Increases and Amount Refunded from the AOTC (1,769.05)

  11. Tuition Increases and Amount Refunded from the AOTC (2,698.54)

  12. Tuition Increases and Amount Refunded from the AOTC (2,782.79)

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

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