Traditional nonprofit public and private colleges and universities historically have been granted tax-exempt status. This permits them to devote more of their resources to funding student financial aid, educational activities, academic research, and community programs to achieve their core missions of teaching, research, and public service.
In addition, the Federal Tax Code contains a number of provisions directed specifically at students and families, including various tax credits and deductions, that help make college more affordable and thus encourage greater access to and participation in higher education.
The Association of American Universities and other associations urged the Senate Finance Committee to include provisions in any upcoming tax reform package that help students save and pay for higher education, and manage their student loan debt.