What to Do if Your Parents Won’t Pay for Your Higher Education

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If your parents won’t make their parent contribution toward your higher education, your financial aid package will be less than what you need to go to school.  However, if their household income was less than $24,000 their parent contribution would be zero. Continue reading What to Do if Your Parents Won’t Pay for Your Higher Education

Four Ways to Scrape Up Money to Pay for Your Child’s Higher Education

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1.  Tax Breaks

The tax code is very friendly for parents paying for college and technical school.  The Hope Scholarship Tax Credit lets you get a $2,500 tax deduction for paying $4,000 for your child’s qualified educational expenses, which are basically tuition and fees, but not room, board, or books.  You get a $2,000 credit for the first $2,000 you spend on qualified expenses.  The first $1,000 is  a refundable credit, which means you can get this as a tax refund, even if you owe nothing in taxes.  The second $2,000 you spend, you get a 25% tax deduction, so it is $500.  You can change your W4 so you can decrease your tax withholding and make monthly payments to your child’s college or technical school.  This tax credit does begin to phase out at $180,000 married filing jointly or $90,000 for single filers.  Less than 10% of U.S. households have incomes of $180,000 or more. Continue reading Four Ways to Scrape Up Money to Pay for Your Child’s Higher Education