This does not mean you should avoid these funding methods you might want to think about using other options that are viable supplements, which could make college funding less stressful. Some of the options include Education IRA, HOPE scholarships, tax-free education savings accounts, and tax deductions for interest paid on student loans. The HOPE Scholarship tax credit helps make the first two years of college available to everyone. This credit is available for tuition and required fees less grants, scholarships, and other tax-free educational assistance. You would be able to claim credit for any tuition and fee expenses not covered by financial aid or other scholarships.
Every little bit helps.
These savings would be especially helpful to help pay your family contribution portion of the college bill. Tax Deductible Student Loan Interest Many of you will soon graduate and begin to repay your student loans. A deduction is allowed for interest paid on qualified education loans. The deduction only applies for the first 60 months of repayment on student loans. This is called a credit balance on your account.