Objects to educational tax incentives (in the form adopted in the 97 tax act) as not well targeted and ineffective in reducing the cost to families of future tuition increases. Recommends greater reliance on income-contingent loan forgiveness as an alternative way to help families pay for college.

A closer look at the Taxpayer Relief Act of 1997 suggests the following: first, that the package will do little to encourage college enrollment, since low-income youth on the margin of college entry can expect little from the nonrefundable credits; second, because the package has no impact on...