In an effort to appeal to college students and parents as the November 2 midterm elections approach, President Barack Obama is pushing Congress to make the American Opportunity Tax Credit permanent.

The credit, which stems from the 2009 stimulus package signed after Obama’s inauguration, allows families of college students to claim up to $2,500 per year on college tuition. Under the stimulus, families could only receive the credit for 2009 and 2010. If the credit becomes renewable, families could claim a maximum of $10,000 per student over four years.

“I am calling on Congress to make this tax credit permanent so it’s worth up to $10,000 for four years of college because we’ve got to make sure that in good times or bad, our families can invest in their children’s future and in the future of our country,” Obama said in a news conference held at the White House Rose Garden.

Because tuition at universities is on the rise, the permanent renewal of the credit will definitely be beneficial for families across the country. Tuition at Penn State rose between 3.9 and 5.9 percent for the 2010-11 school year, and, given past trends, students and families can expect more to come. For many, this credit will ease the growing burden of financing a college education.

According to the Treasury Department, 12.5 million students and families used the credit last year, receiving an average of $1,700.

Will Obama’s push be enough to sway voters to the Democratic party? Only time will tell.

More information on the credit is available here.

Have you or your family made use of the American Opportunity Tax Credit? If not, will a renewal encourage you to reap its benefits in the future? Do you believe Obama’s initiative will help the Democrats in the upcoming election?