Tax Benefits

There are several federal tax benefits that students can take advantage. While this doesn’t help you pay for college upfront. It may provide you with some financial assistance or relief down the road. These tax benefits are:

Student Loan Interest Deduction
Student loan borrowers may be able to deduct up to $2500 annually in interest paid. Most students don’t make any payments while in school so this is a tax deduction that you can benefit from after you graduate.

Hope Tax Credit
Freshman and sophomore students who do not already have an associates degree may be able reduce their federal income tax by as much as $1800 for payments they made toward tuition and fees either with cash or by a student loan that they borrowed. There is a two year limit on this tax credit.

Lifetime Learning Credit
Any student may be able to claim a Lifetime Learning Credit of up to $2000 annually for qualified tuition expenses.

Tuition and Fees Deduction
Students may be able to reduce your taxable income by up to $4000 annually for tuition and related expenses.