Once again, income limits do apply. Finally, the Student Loan Interest Deduction allows students to deduct the interest paid on a qualified student loan used to pay for qualified higher education expenses. Only the interest paid on during the first 60 months is applicable to credit. They should definitely file to get their money back. If students live off campus and pay rent, they may be eligible for the home state property tax credit, Vance said.
Tax exemptions are also available for students claimed as dependents by their parents or guardians.
They may be granted a dependency exemption, Vance said. Vance recommends consulting a professional before taking any tax advice.