Loans help you and your parents pay for your college education. The Federal government offers several different loan programs, and you can also apply for education loans via private alternative lenders such as banks as well as through an alumni program here at Ship.
Federal student loans offer several tax benefits for you and your parents:
- Interest deduction reduces your taxable income based on the amount of interest paid during the tax year
- Tuition and fees deduction reduces your taxable income paid during the tax year
- American Opportunity and Lifetime Learning tax credits can be credited against your Federal income taxes for college tuition and fees paid during the tax year
For additional information about these benefits, find out more below and consult with your tax preparer.