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February 2014

Student Loan Interest Deduction

One piece of good news with student loans: The interest you pay on them may be deductible. The Student Loan Interest Deduction gives eligible taxpayers a deduction for interest paid on qualified student loans. That’s pretty straightforward, but there are a couple of nuances: –          A “qualified student loan” is one that’s used exclusively to pay for qualified higher educational…

Education Tax Credits

Tax time is as good a time as any to discuss education tax credits. The federal tax code provides two primary tax credits, the American Opportunity tax credit (formerly the Hope Scholarship) and the Lifetime Learning Credit. There are slight differences in each, and depending on a family’s circumstances, one or the other may be more beneficial. You can claim…

The “E” in EFC

So you’ve calculated your EFC and are breathing a sigh of relief, telling yourself, “We can do this.” Hold on a second. “E” is “Expected,” not “maximum” or “guaranteed” or anything like that. There is no requirement that your school of choice meets your financial need, or if it does, that loans aren’t part of the aid package. That’s why…