Posted October 06, 2018 11:59:16 Students at two U.S. colleges will be allowed to count toward federal financial aid after the Supreme Court on Wednesday rejected the Obama administration’s bid to allow students to deduct tuition and fees as expenses in federal aid applications.
The ruling is expected to open up the way for students at private colleges and universities to count tuition and other student-related expenses against federal aid to offset federal loan interest and other charges, which students typically can’t count against federal loans.
But that’s not the only change that the court could bring.
First, the court ruled that students who apply for financial aid will not have to include their college’s annual budget for the fiscal year that ends in September.
That’s because it would be impossible for the government to determine whether students are spending money for college.
Second, the Court ruled that states can waive their student-specific limits on how much money students can deduct.
This means states could allow students, for example, to count expenses such as parking or bus rides toward their tuition, and the federal government could count only those costs that are not related to the education of the student.
Third, the Supreme Justice ruled that the U.K.’s “universal” tuition deduction would be limited to 10% of a student’s total annual income.
The court has long said that the deduction should only be available to the poorest students.
Fourth, the justices said the U:s student-cost-sharing provisions should not apply to the costs of higher education.
“The costs of education are not, as is often implied, the cost of the institution itself,” Justice Sonia Sotomayor wrote in a dissenting opinion.
Fifth, the ruling found that students should not have a right to a refund of any federal student aid.
Sixth, it found that the law should not prevent states from allowing students to take advantage of the refundable portion of federal student loans that can be used for private education.
Students who are eligible for federal student financial aid are required to file tax returns for the year in which they apply.
But students can use federal student loan funds for private schooling or other expenses that do not involve tuition or fees.
A federal appeals court in Washington last year upheld the student-reimbursement provisions, arguing that they were constitutional because they helped students get a leg up on other students who were not enrolled in a federal institution.
In 2015, a federal appeals panel overturned that ruling, saying the law didn’t apply to tuition or other costs of private schooling because the students were eligible for financial assistance from the government, which had no obligation to pay them.