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The LLTC is used mainly by graduate and professional students and continuing education students after they exhausted eligibility for the AOTC. On the NASFAA website, you can find links to your state aid programs by following these steps: Some state programs, such as those in California and New York, have centralized systems, which means that awards are set by state-level formulas.
Another popular education tax benefit is the Student Loan Interest Deduction, which provides an above-the-line exclusion from income for up to ,500 in interest paid on federal and private student loans. In other states, the government sets basic criteria but they allow public universities to exercise some discretion when making the awards.
The odds of winning a scholarship are about one in eight.
Prestigious scholarships can have odds to one in 250 or one in 500.
Education Tax Benefits (13%) The federal government provides several education tax benefits, which are claimed on your federal income tax return. These include the American Opportunity Tax Credit (AOTC), Lifetime Learning Tax Credit (LLTC) and Tuition & Fees Deduction. States on the East and West coasts are more likely to provide awards based on financial need.
Of these, the AOTC yields the greatest tax savings per dollar of qualified higher education expenses, but it is limited to four years. An easy way to learn more about aid programs in your state is to head to the website of the National Association of Student Financial Aid Administrators (NASFAA).