The American Recovery and Reinvestment Act (ARRA) significantly increases federal tax credits for people who pay for college education. For many families, these tax credits will offset most of the recent fee increases at University of California (UC), California State University (CSU), and the community colleges. Some students will likely be deterred from enrolling due to the higher fees and it is important to make students and parents aware that the new credits will, for a majority of families, balance out the increase in student fees. This paper presents how much the new tax credits will offset higher student fees in California.