Tax Cuts for Education Expenses

Recent tax law changes have provided assistance to students and families by making direct tuition payments and student loan interest deductible. Certain income criteria must be met to qualify for these benefits. Generally, these benefits fall into three categories:

Before School - the tax regulations allow students and families to establish tax-free Individual Retirement Accounts (IRAs) for educational purposes.

While In School - Certain tuition payments may be deductible, based on your income level. Further, some withdrawals from IRAs and other investments may be untaxed.

After School - Some student loan interest is tax deductible.

One of the best and most comprehensive summaries of tax law changes for students is Publication 970 from the IRS. Graduate students will want to pay special attention to sections relating to teaching assistantships, fellowships, and what items are or are not taxable.

As with any tax matter, you should check with a qualified accountant to help understand these opportunities and help you learn which options you may qualify for.

Request a Graduate Student Loan Application