Reducing the Cost of Education

Lower-cost Schools

If you’ll be working toward a bachelor’s degree, you might consider starting at a two-year community college and then transferring to a four-year school. Community colleges are usually less expensive than four-year schools. Many publicly funded four-year schools are also less expensive than private institutions. You can also save money by attending a local school and living at home.

Work or Volunteer Opportunities

You can work part-time to pay part of your costs. Be sure your work and school schedules don’t conflict and that you save enough time for studying.

Tax Breaks

Certain borrowers can take a tax deduction for the interest actually paid on student loans. This benefit applies to all loans used to pay for post secondary education school expenses. The maximum deduction is $2,500 a year.

Hope Tax Credit or Lifetime Learning Tax Credit

You or your parents might also qualify for one or both of these tax credits.

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This content courtesy of U.S. Department of Education, Federal Student Aid, Students Channel, Funding Education Beyond High School: The Guide to Federal Student Aid, Washington, D.C., 2006.