Tag Archives: Student

Paying for College: Student Loan Interest Deduction Explained

Interest on student loans can get overwhelming. Luckily, the IRS allows for the Student Loan Interest Deduction which can be taken by qualified filers. The deduction allows for any paid interest to be deducted from amount of income earned annually and provides a valuable tool to help balance finances for those in the throngs of repayment.

Eligibility

Any loan taken out for the sole intention of covering eligible expenses related to the pursuit of a higher eduction is considered a “qualified” student loan with deductible interest. The elegibility of expeneses includes those for which the Tuition and Fees deduction is … Read the rest

How Education Tax Credits Can Beat High Education Costs

Many students are deterred from attending college, because of what they believe are insurmountably high education costs. It is important to know, however, that there are now two federal education tax credits can make the costs of higher education for yourself or your children a lot more affordable.  The names of the credits are the American Opportunity Credit and the Lifetime Learning Credit, and most students qualify for one or the other.

Qualification criteria are as follows: you must be paying your own postsecondary tuition and fees – or the fees that are incurred by your spouse or dependents. … Read the rest