WASHINGTON, Oct. 13 (Xinhua) -- U.S. President Barack Obama on Wednesday highlighted the benefits of an initiative to make college education more affordable, according to a statement from the White House.

The American Opportunity Tax Credit (AOTC) was a key part of the 814 billion U.S. dollars economic stimulus package that Obama signed last year. Obama has proposed to make the tax credit permanent in his 2011 fiscal year budget proposal.

The U.S. Treasury Department on Wednesday issued a report, saying that the AOTC increased overall tax benefits for higher education expenses by more than 90 percent, helping 12.5 million students and their families pay for college in 2009.

President Barack Obama speaks in the Rose Garden of the White House in Washington, Wednesday, Oct. 13, 2010, after meeting with college students and their families, to discuss the impact of the American Opportunity Tax Credit (AOTC).

The report also finds that, since the AOTC is refundable, 4.5 million students and families received a tax refund from the AOTC in 2009 with an average value of 800 U.S. dollars, which they would not have been eligible for in 2008.

Obama is scheduled to host a meeting with local college students and their families discussing the AOTC impacts on Wednesday afternoon.