State and federal student loan programs offer an affordable source of funds for thousands of New Jerseyans. Generally, student loans offer low interest rates and favorable terms, including the option to defer payment until a student has completed his or her education. Part of the interest paid on student loans may be deducted on federal tax returns, making them an even more affordable option. Families should keep in mind that deadlines for consideration for aid differ among federal, state and institutional aid programs, so early submission of aid applications is advisable to avoid missing any opportunities for assistance. There are many useful sources of information.
New Jersey offers an additional tax exemption for certain dependents.
If you have a student in college, consult your tax adviser about your options for claiming college expenses on your state and federal returns. While paying for college may seem challenging, it is a wise investment in your child's future. Scott B. Freedman has more than 21 years of experience in higher education, which includes serving as Deputy Director of the California Student Aid Commission and as a Financial Aid Officer.