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Obama Administration Touts Tax Credit For College

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By Jessica Gould

As high school seniors turn their eyes toward college, the Obama administration is extending some programs designed to help parents worried about the cost.

Lacrisha Butler's son is a senior at Wilson High School in Northwest D.C. And she's dreading covering the cost of college next year.

"I'm terrified about, you know, fall," she says.

But U.S. Secretary of the Treasury Timothy Geithner says the federal government has put some provisions in place to help families with tuition.

"What Congress did at the president's initiative was to extend the American Opportunity Tax Credit," he says.

The provision offers a tax credit of up to $2,500 per year for college expenses. Butler says an upfront grant would be better, but every bit of assistance helps.

"There will be student loans. There will be grants. There will be all of that. There will be tax credits. I’ll help him figure it out," she says.

Administration officials hope 16,000 families in D.C. will take advantage of the tax credit this year.

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