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Educational Finance - Tax CreditsBy John Mussi |
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Students are always on the lookout for ways to help pay or offset the cost of their tuition. There are various government grants and scholarships available to you if you qualify. But what if you don't qualify for these government programs? Don't loose hope there are still options available to you that can help offset those tuition bills.
Did you know that tax credits are another way that Uncle Sam can help you finance your college education? Well it's true and it has come to my attention that there are many students, old and new alike, who are not taking advantage of these educational tax credits that they are entitled to. Specifically the tax credits are the Hope Tax Credit and the Lifetime Learning Tax Credit. These two tax credits will reduce the amount of Federal Income Tax that you would pay dollar for dollar.
Who is eligible for these tax credits? Anyone can claim these tax credits; you can claim these credits for yourself, your spouse and anyone you can legally claim as a dependant on your tax return.
Student Loan Forgiveness for Teachers
The Teacher Loan Forgiveness Program will repay up to $17,500 toward college loans for qualified teachers. Full time teachers with an outstanding FFEL or Direct loan balance on or after October 1998 qualify for $5,000 worth of college loan repayment after 5 consecutive years of service.
Student loan forgiveness at the increased amount of $17,500 is available to qualified borrowers who teach full time in the field of mathematics or science at an eligible secondary school or who provide special education to students with disabilities. In an effort to attract and retain more highly trained early childcare professionals, the federal government has developed programs to forgive up to 100% of the college loan balance for individuals at eligible centers.
Consider this, these tax credits can bring down the tax that you owe on April 15th, and money that you don't have to pay in tax can be used to pay for the education you want and deserve. Other limitations are that both of these tax credits may not be used for the same student in the same year. Government graduate loans differ from 'regular' undergraduate loans really in name only. So just like undergraduates, graduates have the opportunity to get a Perkins or Stafford loan from the government.
A Perkins graduate loan is available to students who demonstrate financial hardship. It has an interest rate of only 5 percent and can finance up to $4,000 of the graduate student's education. For graduate students who are adversely limited economically, the Perkins loan is not a bad option. However, one must keep in mind that payments are still expected to be received promptly and perpetually. In extreme circumstances it is possible to request a deferment on loan payments until one is able to pay normally.
Stafford graduate loans are available to any graduate student regardless of their financial situation. Two types of Stafford graduate loans exist: subsidized and unsubsidized. The difference in the two lies in who pays the interest. Alternative graduate loans, also known as private graduate loans, are loans funded by non-governmental entities. Companies offering these loans could be banks, credit card agencies or any other enterprise interested in helping graduate students secure student loans. The Education Resources Institute (TERI) is an example of a company offering this type of loan. It is called the Act Graduate Student loan program. |
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About the Author |
| John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website. |
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