Bill Overview
Title: ED ACCESS Act of 2022
Description: This bill repeals the prohibition against granting the American Opportunity Tax Credit to students with federal or state felony drug convictions.
Sponsors: Rep. Davis, Danny K. [D-IL-7]
Target Audience
Population: Students with federal or state felony drug convictions attending higher education
Estimated Size: 400000
- The bill targets students who are pursuing higher education and who have been previously ineligible for certain tax credits due to federal or state felony drug convictions.
- The American Opportunity Tax Credit is a tax credit for qualified education expenses paid for an eligible student for the first four years of higher education.
- In the United States, there are approximately 19.9 million students enrolled in colleges and universities.
- Some of these students may have past felony drug convictions and could benefit from this tax credit if the prohibition is repealed.
- The exact number of students with felony drug convictions is difficult to ascertain due to variations in how data on convictions is collected and reported.
- A portion of the global student population, specifically those with similar tax credits available and drug conviction restrictions, might also be affected if similar policies were adopted locally.
Reasoning
- The policy impacts students who are in higher education with past felony drug convictions. Currently, they are excluded from the American Opportunity Tax Credit, which could help alleviate some financial burdens associated with college expenses.
- Given the target budget, the policy aims to assist a specific and relatively small section of the student population initially. However, the repealing of the prohibition could have long-term positive effects by improving financial stability and encouraging higher enrollment and completion rates among these students.
- Interviews will reflect a mixture of those directly impacted, those in the broader student community, and individuals who may hold views on educational access and equity, even if not directly affected.
- The Cantril Wellbeing Scores provide an approximate measure of subjective wellbeing, which is expected to somewhat increase in those directly benefiting from the financial aid provided through the tax credit.
Simulated Interviews
College Student (Texas)
Age: 22 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- Being able to access the American Opportunity Tax Credit would really help me manage my tuition costs better.
- It feels great that my past mistake won't continuously hold me back from getting an education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Graduate Student (California)
Age: 24 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- The opportunity to claim the tax credit could alleviate at least some of my loan burden, which is really daunting.
- This change feels like I'm getting a second chance at my education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Part-time Retail Worker and Student (New York)
Age: 21 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 3.0 years
Commonness: 18/20
Statement of Opinion:
- This policy would have a huge impact because easing the financial load will allow me to concentrate more on my studies.
- I'm hopeful but cautious about how smoothly this implementation will go.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Graduate Student, Paralegal (Illinois)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- This policy is long overdue. It directly affects how I can afford further education while supporting a family.
- It's encouraging to see changes that acknowledge the reality of systemic issues.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Full-time Student (Florida)
Age: 20 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 12/20
Statement of Opinion:
- The proposed change is a sign of progress towards fair access to education.
- The credit would definitely relieve some financial pressure, allowing me more time to focus on my studies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Online Business Owner (Ohio)
Age: 28 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- This policy is really crucial for students like me trying to make a fresh start and contribute positively to society.
- Access to this tax credit would meaningfully reduce my financial strain.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Freshman Student (Pennsylvania)
Age: 19 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 20/20
Statement of Opinion:
- I'm at the edge of maximizing my educational benefit from family and external support. The tax credit would provide extra reassurance.
- This is a positive step in supporting students facing similar challenges.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Full-time Working Professional (Georgia)
Age: 26 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 11/20
Statement of Opinion:
- Accessing the tax credit would be a huge relief, it's been overwhelmingly hard to manage work, family, and school costs.
- This initiative could positively change the course for many students aiming to better their lives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Veteran and Part-time Student (New Mexico)
Age: 32 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- The tax credit could seriously ease the transition and help further my education goals.
- It's a step towards improving veteran support as well, particularly those with complex pasts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Science Educator (Washington)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- Though I'm managing, the tax credit would provide some cushion and reassurance.
- It highlights and supports the intersection between education, equity, and rehabilitation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $600000000 (Low: $400000000, High: $800000000)
Year 2: $600000000 (Low: $400000000, High: $800000000)
Year 3: $600000000 (Low: $400000000, High: $800000000)
Year 5: $600000000 (Low: $400000000, High: $800000000)
Year 10: $600000000 (Low: $400000000, High: $800000000)
Year 100: $600000000 (Low: $400000000, High: $800000000)
Key Considerations
- Extent to which students with felony drug convictions were previously barred from claiming the AOTC.
- Actual uptake rate of eligible students claiming the AOTC is uncertain.
- Long-term effects on employment and GDP due to increased access to higher education.