An educated population makes for a richer nation — not only financially, but also culturally. One of the ways the U.S. government eases the financial burden of higher education for students is by providing tax breaks to those paying for school. There are three standard tax incentives for higher education.  Lifetime Learning Credit: This incentive is for anyone who pays tuition and related education expenses for themself or an eligible dependent. Students can receive up to $2,000 in tax credit and can apply an unlimited number of times. However, claiming this credit prevents you from qualifying for the American Opportunity Credit. American Opportunity Credit: If you paid education expenses such as tuition or course materials and pursued a degree at least half-time, you can claim the American Opportunity Credit. Eligible students can receive up to $2,500 in tax credit, part of which can be refunded to them if they owe less than $2,500 in taxes. This credit can only be claimed four times per eligible student. Deducting Loan Interest: It is possible to deduct the interest you pay on a student loan in some cases. This includes if you paid interest on a qualified student loan in 2008, if your filing status is single, or if your gross income is less than $70,000 and you weren't claimed as a dependent. Other tax breaks include special tax credits for students and parents, tax-free college savings accounts, and loan interest deductions. Make sure to check with a financial aid officer to see if you qualify for any of these breaks. You can also learn more about higher education tax breaks via the Federal Student Aid website.