© 2008-
For More Saving Tips
Visit SavingsNut.com™
Thousands of money savings tips and ideas to reduce all your expenses. Also visit:
“College Savings Advice & Tips On How To Get A Low-
TAX CREDITS/OTHER SAVINGS
Tax Credits and Deductions
Federal and state governments often provide tax credits and deductions to help offset the cost of college. Check with your tax advisor or available publications for details, but some of the more common programs are noted below:
1. If you have student loans you may be able to deduct up to $2,500 annually on your federal income tax return for the interest you pay, depending on your income level. Deductions may also be available for state income taxes.
2. At the federal level two different tax credits may be available: The Hope Credit can be up to $1,500 for each of the first two years of college and the Lifetime Learning Credit can be worth up to 20% of the first $10,000 (or $2,000) of educational expenses for college, graduate school or professional classes. Each of these credits have income cap requirements.
3. Students who exceed the income cap requirements for the above credits may qualify for the Higher Education Tuition and Fees Deduction of up to $2,000 depending on income levels.
4. IRS, state government and other publications offer information on all deductions and credits available at both the state and federal level.
Other College Savings
When at college, there always seems to be yet another expense. Here are a few to try to minimize, if at all possible.
1. Computers, other electronics and software can often be bought on campus for less than prices at either local or national retailers. Used computers may also be available at far lower cost than a new computer, and work just as well. As for software, check to see if your school has site licenses for major software such as Microsoft Office. Also, you may be able to get a copy of these programs for very little from your school’s technology department. And do not forget to ask for student discounts wherever you buy.
2. If your laptop has wireless capability, save on Internet costs by studying in locations that have free wireless access.
3. If a student needs furniture for their dorm room or off-
4. Medical care and prescriptions are often available on campus at a fraction of the cost of regular sources. Visits to the student health center to see a doctor or nurse are sometimes free or low cost. Filling your prescriptions at the student health center may also provide significant savings.
5. Entertainment costs can also be minimized. Check with your friends and resident advisor before you rent or buy a movie. Quite often you can just borrow the movie. Or join some friends for a movie by hooking up a DVD player to one of the dorms TV’s. And keep in mind all the great facilities and activities on campus for recreation, exercise, sports, etc. There is always something to do and quite often it is either free or very low cost.