Tuition and Fees Deduction

Tuition and Fees Deduction

How to Qualify for the Tuition and Fees Deduction

So, why is this deduction so desirable? Well, for one, the amount of the tuition and fees deduction is taken as a deduction “above the line”, and not on Schedule A. Secondly, Congress reinstated the deduction for the tax year 2020, and it will expire on December 31, 2020.

 In essence, the purpose of the deduction is to permit qualifying taxpayers a subtraction from their taxable income to cover a part of the cost for college tuition. It also permits a deduction for fees paid for education related expenses.

The deduction had View full post…

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6 Other College Expenses

6 Other College Expenses

6 other college expenses (and opportunities) to consider when the financial aid letter arrives

(BPT) – The last year of high school is a whirl of activity, and it’s no different when it comes to the final leg of college selection. Once the acceptance notifications arrive, it will soon be time to sit down with a different stack of mail: financial aid letters and other college expenses to consider.

As you undoubtedly know, the cost of college is no small investment. In the 2017-18 academic year, the average tuition and fees for four-year public colleges is $25,620, while for private colleges, the costs are $33,520, and public two-year colleges cost $3,570, according to the College Board.

At the same time, the College Board reports that more than 70 percent of students receive grants to help pay for college. Hopefully, those financial letters contain some good news.

For most families, analyzing the letters is a process of uncovering the college that can offer the best education at the best value for your student. One way to get there is to parse the details of the letter itself so you understand the net cost of your student’s education. Still, it’s critical View full post…

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Save for Retirement First

Save for Retirement First

Do You Know What’s More Important – To Save for Retirement First or Your Child’s College?

This topic is a hot potato in many respects. Should the parent’s primary responsibility be to save for the child’s education first or to save for retirement? The answers to that question will vary depending upon who responds – the parent or the child.

As parents, we know all too well how high college costs are and the student loan problems that exist today. We all want our children to be successful and have many of the financial advantages that we didn’t have. Student loans now average $35,000 to $37,000 per college graduate, and no parent wants this burden for their child.

However, many financial advisers are of the opinion that a parent can take better care of the child if they take care of themselves first. By this, they mean that the parent should save for retirement first, then college. Following are some of the reasons View full post…

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Student Loans Forgiveness

 Student Loans Forgiveness – Other Options You May Not Be Aware Of

Student loans forgivenessThere are many programs for student loans forgiveness and Public Service Loan Forgiveness is but one of them. These programs were designed to help student loan borrowers who are having financial difficulty in repaying their loans.

A couple of the popular student loans forgiveness programs are in the fields of health care and teaching, and are offered by many states across the nation. Many, if not most, student loan borrowers are aware of the federal student loans forgiveness programs, such as the PSLF, and also the repayment programs that are income driven.

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Manage Your Money With These 5 Tips

5 Tips on How to Manage Your Money As You Enter College

Manage your moneyThe day you dreamed about has finally arrived. You’ve left the comfortable nest and are about to enter college. Hold on though, because unless mom and dad have very deep pockets, you’re going to have to learn how to manage your money. In addition to that, you’ll learn about credit scores, and hopefully how to create a financial plan that will see you through those tough college years.

Starting college, you’ll have more control in the decision making for your life; however, there is one very basic concept that you need to master. Even if your parents are financing your education, you need to learn how to manage your money effectively.

Many of the habits, good and bad, that you learn in college about money and finance, will be with you for many years to come. Statistics reveal that the average four year college student graduates with credit card debt of $4,000.00 plus student loans totaling $30,000.00.    Financial experts say that every college student should formulate an easy plan in order to take control of their saving and spending. The following tips can help you learn how to manage your money as you make this plan.

1. Create a budget

It really doesn’t matter how small your budget is, you need to establish one and follow it. Your income for your budget will probably come from your parents, your part time work if possible, and financial aid. View full post…

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Create A Budget In College

Should I Create a Budget In College? – Absolutely, Learn How Here

Create a budget in collegeIf you don’t know how to create a budget, or haven’t been advised just how important it is to have one, then this article is for you. If this the first time that you are on your own, and you aren’t able to get a handle on the various school expenses, then you may find that college life may be difficult. Not being able to manage your money responsibly can cause financial difficulties, increased debt, and other concerns that you really don’t need to have.

You may be a very talented individual, especially in the field of study that you are pursuing, and college is expected to help you to take advantage of those talents. You need to expand your mind and learn to function as an independent and responsible adult. It’s very important that you are able to focus on your education, and at the same time, enjoy the social life and extracurricular activities while in college.

To accomplish that, you will need to create a budget that contains a flexible spending plan. That means your variable and fixed expenses must at least equal the financial resources that are available to you. Hopefully, for you, the resources will exceed the expenses.

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5 Ways To Save For Your Child’s Education

How to Save For Your Child’s Education

5 ways to save for your child's educationIt’s no secret – having a child is expensive, and it only seems more so in our current economy. You want the very best for your kids, and will do anything in order for them to have the best possible future.  One of the things you can do to ensure their future is bright, is to start a college fund to make sure they have every advantage when it comes time for them to attend a university.  With experts predicting college educations to cost upwards of $95,000 by 2021, it’s only natural to feel a little overwhelmed just thinking about your child’s education.

Take a deep breath. Yes, saving for their college education starts right now, but it doesn’t have to define your financial decisions for the next 18 years. Here are some tips and ideas on what you can do today to make sure you have your finances in order when it’s time for college.

  1. Put Aside Only What You Can Afford at the Time

Like I mentioned earlier, having a child is expensive BEFORE you even factor in college. When it comes to choosing a savings plan, make sure you pick one that works with you in your current situation. Can you only View full post…

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