The Michigan Daily-Friday, January 8, 1988- Page 5
Tuition waivers will be taxed;
graduate recruiters worried
(Continued from Page 1)
provision which made tuition
waivers and certain scholarships tax
free. The tax on the aid will now
range from $200 to $700 per term.
Out-of-state students will suffer the
Tuition waivers are granted to
teaching and research assistants as
payment for their work. The affected
scholarships are those given by
companies to employees for contin-
uation of their education.
The University is attempting to
cushion the impact on students as
much as possible, said University
government relations official
Thomas Butts. To ease the burden,
the University will not withhold the
tax from the students' paychecks.
Instead, the University will bill the
tax amount to the students as a
charge on their Student Account
Statements in March and April.
The Graduate Employees Organi-
zation, the teaching and research as-
sistant union, is reviewing possible
solutions to the problem. The union
was active in lobbying members of
Congress to vote against the change.
The GEO is currently awaiting an
administration response to the new
Although tuition waivers have
traditionally been tax exempt, the
Joint Tax Committee of Congress
estimated that the privilege costs as
much as $300 million annually.
Recent revisions of the tax code at-
tempted to eliminate such costly
features of the tax system.
University government relations
officials, along with companies
sponsoring employee educational
programs, have fought the elimina-
tion of the provision in Washington.
University Vice President for Gov-
ernment Relations Richard Kennedy
said, "We've tried hard for years to
keep the provision in the tax code.
Now, its expiration means an
unnecessary handicap on our graduate
The elimination has not stopped
the University's attempts to have tho
provision made permanent. Congress
is scheduled to review the elimina-
tion in March.
In the interim, students are en-
couraged by the University to review
their tax status and apply for addi-
tional financial aid.
Daily Photo by KAREN HANDEMAN
Working for walking
LSA senior Kathy Koh, (left to right) and first year student Patricia Armstrong talk to sophomore Dave
Hooper while recruiting volunteers for Safewalk in the basement of the Union yesterday. Safewalk is a free
nighttime escort service running from 8 p.m. to 1 a.m. starting Jan. 25.
The Personal Column
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