How To Alleviate Student Debt

How To Alleviate Student Debt
News
Like Us On Facebook
Like Us On Facebook

While student debt may be an inevitability for many, there are many things college students can do to alleviate this debt. According to the New York Federal Reserve, Americans ended the third quarter of 2012 with a $74 billion lighter debt load overall, but consumers upped their non-mortgage credit debt by another $2 billion and took on $42 billion in new student loans.

With the majority of the new debt coming from student loans, college students should know their options as far as tax breaks go, especially heading into tax season.

The U.S. Government Accountability Office found that Americans left nearly $800 million worth of college tuition tax benefits in 2009 on the table.

Here are some of the best tax credits college students can take advantage of:

American Opportunity Credit. Students are eligible to claim up to $2,500 for the first four years of post-secondary education. With 40 percent of the credit being refundable, students can get back up to $1,000 on their refund –– even if they don’t owe any taxes, according to the IRS.

What qualifies: Tuition and fees, course related books, supplies and equipment. Income: Couples filing jointly who earn less than $160,000; single-filers who earn less than $80,000.

Lifetime Learning Credit. For students earning less than $60,000 (single-filers) or $120,000 (married, filing jointly), they can claim up to $2,000 education-related expenses.

Tuition and fees deductions. Like the American Opportunity Credit, students earning less than $80,000 (single) or $160,000 (married, filing jointly) can deduct up to $4,000 in tuition and fees on their annual tax returns. Use it while you can –– this tax break is set to expire at the end of 2013, unless lawmakers extend it.

Student loan interest deduction. If you’ve taken out a federal or private student loan, you’re eligible to deduct up to $2,500 worth of interest paid on the loan as an “above-the-line” exclusion from your income. You don’t have to itemize your deductions in order to claim it.

Note: College students can only claim one of the above tax credits per year, but parents supporting more than one child in college can claim tax credits on a per-student basis.

James Gilbert | Elite.

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

James Gilbert

World news writer James Gilbert is one of the oldest on the Elite Daily writing staff, as he is a borderline Gen Y member. Being considered the dinosaur of the group, he is constantly asked about historical time periods he did not actually live through. All and all, James Gilbert brings that dynamic and balance to the team, rounding out Elite Daily’s Voltron (or that thing the Power Rangers formed for you young whippersnappers.)

More In News

World Emily Arata

Hero 13-Year-Old Boy Saves Mom From Abusive Boyfriend By Stabbing Him

A 13-year-old boy from Phoenix reportedly saved his mother’s life after her abusive boyfriend attacked. Darvon reached for a kitchen knife after his mother’s long distance boyfriend, Keith Childress, 26, began beating her while threatening the boy and his 15-year-old sister. He stabbed Childress repeatedly, acting on his instincts. He said, It was my instincts, I […]

World Sean Levinson

Virgin Galactic Spaceship Crashes In Desert During Test Flight (Photos)

A rocket plane made by Richard Branson’s Virgin Galactic crashed in the Mojave Desert during a test flight on Friday morning. The firm’s Twitter account said that SpaceShipTwo had experienced an “in-flight anomaly” as it conducted its 55th test, RT reports. One pilot is dead with the other seriously injured, both of whom had been equipped […]

World Sean Levinson

Child Bride Who ‘Killed Husband To Escape Marriage’ May Get Death Penalty

A 14-year-old Nigerian girl may be put to death if found guilty of fatally poisoning her 35-year-old husband shortly after their wedding. Wasila Tasi’u married Umar Sani last April in accordance with Nigeria’s marriage act, which states that anyone under 21 can be married as long as his or her parents consent. Wasila is from an impoverished, conservative […]

World Emily Arata

Father Finds Perfect Halloween Solution For Son Who Can’t Have Candy

Halloween isn’t exclusively about rotting haunted houses and ghouls. There’s a sweet side to the holiday, as shown by this father’s letter that dates back a couple years. The note, delivered to the man’s neighbors, explains that 8-year-old Fletcher has epilepsy. To prevent seizures, he must follow a strict diet that excludes candy. So little […]

Also On Elite

World

Woman Raped 30 Times A Morning In ISIS Brothel Begs West To Bomb Them

Kurdish fighters reported they received a phone call from a female hostage of the Islamic State last week, begging for the Western forces to bomb the facility in which she is imprisoned. The woman is one of the thousands of Yazidis made into sex slaves by the militant group, which cites the Quran as justification for such treatment. […]

Sports

Why Suspending Todd Gurley Is Ignoring The Bigger Problem With The NCAA

Saturday means college football. More specifically, beer, yelling and tailgating, but most importantly, college football. I hear all the time, over and over again, how college football trumps its counterpart, the NFL, due to the passion, intensity and the unpredictability each game provides. Last week, however, another part of the game — maybe the only […]

Film

Was ‘Gone Girl’ Better Or Worse If You Read The Book?

Elite Daily Entertainment Writer Adam Pliskin co-authored this post. Adapting novels into films is nothing new. But, when a specific adaptation creates a perfect storm at the box office (best-selling book, high-profile director, star-studded cast), people tend to sit up in their seats and take notice. David Fincher’s adaptation of Gillian Flynn’s “Gone Girl” is such […]

Humor

Damian From ‘Mean Girls’ Made A Parody Of Sam Smith’s ‘Stay With Me’ (Video)

Daniel Franzese, also known as Damian from “Mean Girls,” just released the parody of all parodies. With the help of actor Adrian Anchondo and the San Francisco Gay Men’s Chorus, Franzese took Sam Smith’s “Stay With Me” and completely flipped it over. I present to you: “Please Go Home” — something all one-night-stand participants can […]