Punished for making too much.

I find these numbers ridiculous. I pay $36,0000 out of pocket each year and that is (net income after gross) for my daughter's college and she still has loans on top of that she is taking out. We receive no grants or aid which is fine, but to extend a credit and then create an arbitrary number of $160,000 as a cut-off so that making just a few thousand above that disqualifies me is ridiculous.

Where is the work ethic to work hard? You may say I have a fortunate problem, but you are also saying if you just worked less like Bob down the street and made just a little less we would reward you, but because you are trying to better your life we will not include you in all the special programs we are providing using your tax dollars.

Let's call it what it is....wealth redistribution, class envy, and punishment for trying to better your situation. I am not "fortunate" I had to work hard for years to get to where I am today. I have worked a number of terrible jobs when I was younger I was just motivated to do better. Where is the motivation when you are just going to reward one group and have another group pay for it.
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ANSWER:

What strikes me is that your arguments are better suited to the conclusion that the college tax credit should be eliminated, but that is not what you want. Instead you want the income ceiling lifted, and I doubt whether you would be as indignant if it was only lifted high enough for your family to make it in- even if others wound up just a few thousands too high at that level.

You mention class envy. It is indeed a shame that those of a higher income class are envying the ones who are occupying a lower rung on the ladder. It is your choice to pay $36,000 per year, out-of-pocket. You are envying families that do not have the luxury of making that choice- that kind of spending is out of the question for them. And not because they are lazy or unmotivated, but because there are very few situations in life (comparatively speaking) that allow for such extravagance.