Tax Breaks for Tuition and Student Loans

You've probably heard of the student loan interest deduction. But what you may not know is that this is just one of several tax breaks for tuition and student loans that are baked into the U.S. tax code.There are also federal income tax advantages for saving for college through 529 college savings plans, Coverdell Education Savings Accounts, and the Education Savings Bond Program. And some states provide state income tax deductions or tax credits based on contributions to 529 plans.Going to college is getting more expensive every year. But by taking advantage of as many tax breaks for tuition and student loans as you can, you can effectively reduce the overall cost of your post-secondary education. Here are the credits and deductions that you should be aware of.

Today we're talking about a tough subject: what happens when you die? Specially, what happens to your student loans when you die?Do your student loans die with you (meaning your family is free and clear), or will someone else have to experience the burden of your student loan debt? Are student loans forgiven at death?It's important to know what will happen — because if you don't follow these steps, your family could be liable for your student loans.

Check out Robert's interview on Money Life with Chuck Jaffe, where he breaks down the latest on student loan repayment plan options.

It really is possible to make money in one hour.You've heard of money making ideas like starting a blog or starting a business, but those ideas take time. While they have great long term potential to earn extra money, sometimes you need to earn that extra money fast. And it can be hard to find ideas where you can actually do that.Maybe you have a bill coming due, or you're looking for some extra cash pretty quick to do a fun activity. No matter what the reason, you need to remember that there are ways to make money quickly. And if you like quick money, make sure that you check out our guide to How To Get Free Money (yes, potentially $1000s).However, when it comes to quick money, you should know that it's not great money. These ideas are real, they work, but they won't make you a millionaire by any means. They will help you close a small gap in your budget or earn a little extra when you need it.You can also check out our 10 Best Money Making Apps if you want mobile access to making money!

The only way I see myself escaping my student loan debt is to kill myself.I want you to read that again: The only way I see myself escaping my student loan debt is to kill myself.Reading that sentence gets me emotional. I can sense the pain. I can feel the despair in the words. It creates a tightness in my chest as I hold back tears thinking about what that means. You can sense the burden that is on her shoulders thinking that the only way out is to end her life. Isn't that the most horrible thing you've read?You want to know something, though? I've read that sentence twice this year talking to readers here on this site.And the truth is that there are many more people out there than the two readers that reached out to me. People that we haven't necessarily connected with, but maybe will find this article and feel a little weight lifted off their shoulders.Let's talk.If you are feeling suicidal, please call the National Suicide Prevention Lifeline at 1-800-273-8255 or text HOME to 741741.

What is a grandparent-owned 529 college savings plan? How do they work? What do you need to know about them and what changes should you know about? A grandparent-owned 529 plan is a type of 529 college savings plan where the account owner is a grandparent, as opposed to a parent. The grandchild is the beneficiary. Another alternative would be a custodial 529 plan account, where the grandchild is both the account owner and beneficiary, but the grandparent serves as custodian. There is no limit on the type of 529 plan where grandparents can make contributions. Grandparents can contribute to grandparent-owned 529 plans, custodial 529 plans, and parent-owned 529 plans. Keep in mind that grandparent-owned 529 plans have a different impact on eligibility for need-based financial aid than parent-owned 529 plans. Here's what you need to know if you're interested in a grandparent-owned 520 plan. 

As the cost of college continues to rise, more students and families are turning to employer tuition reimbursement programs as a way to fund education without debt. These programs, offered by companies ranging from fast-food chains to tech giants, provide employees with financial support for accredited degree programs, professional certifications, and even graduate degrees like getting your MBA.For workers, the appeal is straightforward: earn a paycheck while receiving substantial help with tuition. For employers, tuition assistance programs are a recruitment and retention tool in a competitive labor market.The average annual benefit is about $5,200, with some companies covering 100 percent of tuition. Starbucks, Walmart, and Papa John’s reimburse all eligible tuition at partner universities. Others, like Microsoft and Goldman Sachs, provide up to $10,000 per year.

Student loan debt is one of the most complex financial products in the United States, shaped by constantly changing federal programs, complicated repayment plans, and rules that differ based on the year you borrowed, income, marital status, and type of employment. In today's world, so many people default to “just ask ChatGPT” for quick answers. But what happens when you do?I posed two scenarios to ChatGPT. The first was straightforward: $20,000 in federal student loans, with a borrower earning $52,000 a year as a teacher. The second was more complicated: $220,000 in loans across undergraduate, graduate, and private loans, with a $120,000 income as an architect.The results revealed the pitfalls of using artificial intelligence as a financial resource. While the tool offered a basic repayment overview, it also recommended outdated programs and struggled to provide clear answers on loan forgiveness programs like PSLF. Even when it recommended questions to help personalize the output, the questions weren't enough to provide a better answer.

After several years of delayed rollouts, the U.S. Department of Education has confirmed that the Free Application for Federal Student Aid (FAFSA) will be available on time this fall. Secretary of Education Linda McMahon certified to Congress that the 2026-27 FAFSA will launch by the statutory October 1 deadline, restoring a timeline that families had long relied upon when apply for financial aid.The Department began beta testing of the form in early August, describing it as the "earliest testing phase in FAFSA history". According to officials, more than 1,000 students have already submitted applications during this period, with thousands more expected before the public launch.For families eager to finalize their college financial aid plans, beta testing provides a chance to get an early start on the FAFSA.

If you drop a class or drop out of college, you may have to repay all or part of the financial aid you received. How much depends on the type of financial aid and when you dropped the class or left school. Even though the Federal Pell Grant is a grant that normally does not need to be repaid, you may have to repay all or part of it in certain circumstances. And let's face it, even the best students may drop a class here and there. So here's what you need to know about the impact on your financial aid if you drop a class or even drop out.