How to Pay for College

Filed Under Advice

College is possibly one of the most challenging things in your life to pay for, right up there with your wedding, your first car, and the down payment on your first house. It can be especially difficult if you don’t have much help, and are having to work full time while you’re in school in order to pay for it.

However, there are ways to make paying for college easier. Here are a few tips.

Ask for help. If you know certain family members are likely to give a generous monetary gift on graduation, suggest that they give the gift now instead, to help you pay for tuition. I know the graduation gifts are nice, but sometimes it’s better to have the money now and make paying for school easier on you. Plus, they’ll probably still get you something small for graduation, such as a nice university diploma frame.
Take advantage of the education tax deductions on your taxes. Any tuition that you paid yourself (i.e., wasn’t reimbursed by your employer) is deductible on your taxes. Take full advantage of every tax credit that applies to you can help you save some money on your income taxes.
Get help in gift form. Anytime family or anyone else gives you money to help pay for school, be sure to ask for it in a lump sum as a monetary gift. You can get a certain amount of money from each person as a gift each year without having to declare it as income — in 2009 this limit is $12,000 from each person. If you get the money as a gift and then pay for college yourself, you will still be able to take advantage of the education tax deduction when you file your taxes.
Apply for all scholarships and grants you think you might have a chance at getting. There are many scholarships and grants that go unclaimed every year, so be sure to apply for everything you can find that seems suited for you.

Paying for college is still difficult no matter how many of these types of tricks you employ, but you can at least make it much easier by doing some of these things!

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