Get return on student loans with tax benefits
Taxpayers can keep more money in their pockets this tax season by using education-related tax credits and deductions. College is an investment and tax season is a time when you receive a return on that investment.
Higher education pays great dividends, not only in the form of personal satisfaction and rewarding employment, but also through tax credits and deductions. Federal income tax law provides two education-related tax credits and two deductions. These tax benefits can save taxpayers in some cases thousands of dollars.
Learn more about the two education tax credits and two deductions.
Study up on the rules. If you are a student, parent, or student loan borrower, it is worth the "extra credit" work to find out what you are eligible for. Visit Sallie Mae's CollegeAnswer.com, the planning-for-college website, and read about tax benefits to find out how you can catch a break by taking advantage of education-related tax benefits.
Interview an expert
To schedule an interview with a financial aid expert, contact Erica Eriksdotter at (703) 984-5628. Media inquiries only please.
Fast facts
- You can deduct student loan interest from your taxes even if you don't itemize deductions.
- Third parties paying interest on a student loan may be eligible for a deduction.
- The IRS increased income limits for the Hope and Lifetime Learning credits in 2004. Be sure to check IRS publication 970 for details.
Related topics
Applying for financial aid
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Managing student loans