Graduate Financial Aid | University of Mount Olive (original) (raw)

The Hope Scholarship Tax Credit

The Hope Scholarship tax credit allows families to claim an annual tax credit of up to $1,500 for each of the first two years of college for each eligible student. An eligible student is one who is carrying at least one-half the normal full-time course load at a qualified educational institution and is enrolled in a degree program.

A student or a taxpayer may claim the credit for his or her spouse or dependent children. Expenses for books, room, board, athletics, and insurance are not included in this calculation.

The Hope Scholarship tax credit is phased out for joint filers with 85,000to85,000 to 85,000to105,000 of annual adjusted gross income, and for single filers earning between 42,000and42,000 and 42,000and52,000 yearly. The credit can be claimed in two taxable years of college and by students who are enrolled at least half-time for any portion of the years. Visit the IRS online for more information on tax credits.

Lifetime Learning Tax Credit

The Lifetime Learning Credit is for students who are returning to college as juniors, seniors, graduate or professional students. The maximum credit a taxpayer may claim for a taxable year is $2,000. Unlike the Hope Credit, there is no limit to the number of years in which a Lifetime Learning Credit may be claimed. The credit is available for tuition and required fees, grants, scholarships and other tax-free educational assistance, for amounts paid on or after July 1, 1998 and for post-secondary enrollment beginning on or after July 1, 1998.

Student Loan Interest Deduction

Taxpayers who have loans to pay for the cost of attendance at an eligible educational institution may generally deduct interest they pay on student loans for themselves, their spouse or their dependent(s).
The deduction is available only during the first 60 months in which interest payments are required on the loan-for payments due and made on or after January 1, 1998. The maximum interest that may be deducted varies from one tax year to another. We recommend speaking with your financial planner or tax consultant if you believe you are eligible for this benefit.