(ASSUMPTION) The government is considering legislation...

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SOURCE: PrincetonReview

The government is considering legislation that would reduce tax benefits for parents opening college savings funds for their children. If passed, the new laws would result in greatly decreased tax benefits for parents who open such accounts. Therefore, if the new laws pass, many college-bound individuals will have difficulty covering their college costs, and some would not be able to attend.

The argument above assumes which of the following?

A. For most college-bound children, their parents' savings accounts are the only source of educational funding.

B. The legislation is being considered because many parents were misusing savings funds dedicated to their children's educational costs.

C. College-bound children cannot open savings funds separately from their parents.

D. Because of decreased tax benefits, some parents will not open college savings funds for their children.

E. Parents facing the new restrictions on college funds will find other investments to dedicate to their children's educational costs.

OA: D

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by giovanni.gastone » Sat Apr 09, 2011 7:47 am
This is their official explanation:

"Yes. The argument assumes that a lower number of parents will open savings accounts, which will lead directly to less available funding for their children's college costs."

Maybe one of you can enlighten me. I think either A or C would be a much better answer than D. In particular, if A were not assumed the conclusion would seem to fall apart; whereas, D doesn't even match in language (e.g., "many college-bound individuals..." in the stem versus "some parents will not open..." in D).

What do you think?

Gio

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by fitzgerald23 » Sat Apr 09, 2011 9:34 am
Here is why you eliminate A & C:

The passage specifically talks about college savings accounts. In choice A they are talking about regular savings accounts, which are a totally different thing. Just because students rely on parents savings would not mean they rely on college savings accounts. They are two different things, and only 1 of which would be affected by the new law.

C really has nothing to do with the conclusion. The authors assumption is clearly that many parents are opening college savings for their kids only because of the tax benefits and the kids rely on that money. If the tax benefit is gone that will not mean that the kids will just be given the money to do with in their own savings.

With D you have to realize that the author makes two conclusions: 1. Many will have difficulty covering tuition. 2. Some will not be able to attend.

D simply verifies conclusion number 2. In order for some kids to be unable to attend some parents must not open college savings accounts because of the loss of the tax break.

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by giovanni.gastone » Fri May 13, 2011 10:02 am
fitzgerald23 wrote:Here is why you eliminate A & C:

The passage specifically talks about college savings accounts. In choice A they are talking about regular savings accounts, which are a totally different thing. Just because students rely on parents savings would not mean they rely on college savings accounts. They are two different things, and only 1 of which would be affected by the new law.

C really has nothing to do with the conclusion. The authors assumption is clearly that many parents are opening college savings for their kids only because of the tax benefits and the kids rely on that money. If the tax benefit is gone that will not mean that the kids will just be given the money to do with in their own savings.

With D you have to realize that the author makes two conclusions: 1. Many will have difficulty covering tuition. 2. Some will not be able to attend.

D simply verifies conclusion number 2. In order for some kids to be unable to attend some parents must not open college savings accounts because of the loss of the tax break.
Thank you for the explanation. Sometimes it helps to return to a CR problem after some time with a refreshed mind. I see now that D makes a more logical underlying assumption that bridges the premises and the conclusion. A and C, like you said, are either irrelevant or not necessarily fatal when you negate them. But, D makes sense as an assumption that the author's making to draw his conclusion.

Thanks,

Gio