Tax Benefits of Financial Aid

The Taxpayer Relief Act of 1997 created several tax benefits for families who are saving for, or already paying, for higher education.

  • The Hope Scholarship Credit
  • Lifetime Learning Credit
  • Student Loan Interest Deduction
  • Education IRAs
  • IRA Withdrawals For Higher Education Expenses
  • Qualified State Tuition Programs
  • Exclusion For Employer-Provided Educational Assistance

PDF Version of Parent and Student Guide to Federal Tax Benefits for Tuition and Fees
from the National Association of Student Financial Aid Administrators web site.

For information regarding the taxability of various types of educational assistance you may receive if you are studying, teaching, or researching in the United States, please refer to "Scholarships, Fellowships, Grants, and Tuition Reductions".

For further guidance, you may visit: IRS web site