A $2,000 tax credit to help students with tuition and fees can save you hundreds of dollars over the course of the year, according to a new report from the Federal Reserve.
The report by the Federal Deposit Insurance Corp. estimates that the $2.2 trillion package of tax relief, loans, and grants for students and families would increase the U.S. GDP by $17.4 trillion over the next decade.
The $2 trillion in tax relief would help to offset the economic pain caused by the recession, the Fed said in a release on Tuesday.
It is the second installment in a four-part report.
For starters, it would help those who would have otherwise been struggling to pay for college, especially those with low incomes.
As a result, the report said, the number of college graduates would be on the rise.
Also, the money could be spent on other goods and services, such as health care, transportation, and more.
The Fed report is a reminder that there are still a lot of factors that affect our ability to make ends meet.
But the report also suggests that tax breaks are not the only way to help.
And, as usual, the biggest cost of all comes from the individual taxpayers who don’t take advantage of them.