HB 1594 – Environmental Cleanup Grants

February 9, 2009

HB 1594 Environmental cleanup grants. This legislation would not allow for a graduated student to be able to take advantage of the student loan interest adjustment on an individuals income tax return. Also, if in the form of a grant then student education expenses would not be taken also. A grant would be given at the time of education and it must be current. If a repayment of the amount is owing after the education then since the amount was paid in a prior year the unreimbursed and now required to be reimbursed amount due to default would have to be paid back. This would be doubling punitive to the student. There is no recognition of “Conditional scholarship” in the IRS tax code. A better way would be to require work during the summer months in order to be eligible for the scholarship or grant in the next year’s timeframe. This would make more sense and conditioning upon completion of academic quarters would be based upon a quarter by quarter basis. Thus no “Equalization Fee” would be required. the process of the interest rate being established by the Board could be punitive for individual students. The rate should be established by the Student Loan Program rate in effect for a given period of time. This should not be determined directly by a Board which could arbitrarily increase or decrease the amount. Selected individuals thus could be punished or rewarded with this type of system. Annual consideration of the interest rate is unrealistic. Interest rates currently are fluctuating daily. Forgiveness of fees and penalties and interests rates which are established by the board could be adjusted to reward some and punish others in the same way as interest rates could be adjusted. What this would come about to is graduated students would be working for a two to five year period for minimum wage and after completion of their projects they would still continue under minimum wage in the industry because another crop of graduating students need to work for minimum wage. Thus the summer work program which is limited in time would be a better method of building a “green” career. Minimum wage sucks.