The basic problem is simple: Give everyone $100 to pay for higher education and colleges will raise their prices by $100, negating the value of the aid. And inflation-adjusted aid--most of it federal--has certainly gone up, ballooning from $4,602 per undergraduate in 1990-91 to $12,455 in 2010-11..ata from the Federal Reserve Bank of New York shows that over the past decade, student loan debt has increased by 281 percent, from about $260 billion in the first quarter of 2004 to $990 billion in the first quarter of 2013 and is now higher than the country's collective credit card debt.
What is a 'Deferred Income Tax'. A deferred income tax is a liability recorded on the balance sheet that results from a difference in income recognition between tax laws and accounting methods. For this reason, the income tax payable for a company may not equate to the total tax expense reported.
Now, the specific tax treatment of the return of capital portion is nuanced and can bemuddle investors. Although some describe the return of capital portion as tax exempt, this isn't quite correct. In reality, ROC distributions are tax-deferred. Specifically, the ROC portion reduces your adjusted basis in the REIT.