Reducing The Cost Of Education There are other options you might consider to lower the cost of your education after high school. The following are a few ideas to think about.
Lower-cost schools If you’ll be working toward a bachelor’s degree, you might cHope or Lifetime Learning tax creditonsider starting at a two-year community college and then transferring to a four-year school. Community colleges are usually less expensive than four-year schools. (Some four-year schools that are partially funded by local or state taxes can be less expensive as well.) Because attending a community college allows you to live at home, you can save money on room and board.
If you decide to start at a community college, make sure your community college courses will transfer to your four-year college and that they will count toward your bachelor’s degree. Many community colleges have “articulation agreements” with four-year colleges under which the coursework taken at the community college transfers into the four-year degree program. Be sure to ask about the types of articulation agreements the community college has, with whom, and for what programs of study. Discuss any concerns you have about transfer courses and credits with the college registrar at the college you’re transferring to.
Work or volunteer opportunities You can work part-time to pay part of your costs. Be sure your work and school schedules don’t conflict and that you save enough time for studying.
Tax breaks Certain borrowers can take a tax deduction for the interest actually paid on student loans. This benefit applies to all loans used to pay for postsecondary education school expenses. The maximum deduction is $2,500 a year.
Hope or Lifetime Learning tax credit You or your parents might also qualify for one or both of these tax credits. Click here for additional information about tax credits, deductions and the Internal Revenue Service.
DID YOU KNOW … Nearly half of all undergraduates or their parents had their taxes reduced by an average of $600 by claiming education tax benefits under the Hope and/or Lifetime Learning tax credits.
U.S. Department of Education | Federal Student Aid
