In addition to financial aid, the federal government offers tax benefits to families paying educational costs. These benefits, which have been enhanced as a result of the Economic Stimulus Package, are in the form of tax credits and deductions.
College students and their parents should take advantage of these benefits, which can add up to a significant savings. If you have questions regarding these credits and deductions, contact a tax professional or visit irs.gov.
Additional information regarding tax benefits may be viewed in the 2014 Higher Education Tax Benefits Booklet or on the NASFAA website.