There are a few other types of aid that are also available to families with college-bound students, including:
- Tuition tax credits — a dollar-for-dollar reduction of federal income taxes to help toward the cost of higher education
- Hope Tax Credits — first- and second-year full-time students; up to $1,650 per student
- Lifelong Learning Tax Credit — equal to 20% of a family’s tuition expenses, up to $2,000 for virtually any postsecondary education and training (even less than half-time study)
- Student loan interest deduction — payments for interest on student loans are tax-deductible
- 529 college savings plan* — a long-term savings account parents can take out for a child’s college education; this money is not taxed. Please check the rules and guidelines of the specific 529 plan to make sure monies can be used for a BJU education. (*Note: BJU does not participate in the pre-paid tuition 529 state plans.)
For more information on the HOPE and Lifetime Learning tax credits, and other tax benefits for postsecondary students, see www.irs.gov/publications/p970/.