Take Charge and Reach Your Goals. Financial Tips for College PICPA The Pennsylvania Institute of Certified Public Accountants PICPA is a professional

Take Charge and

Reach Your Goals

Financial Tips for College

PICPAThe Pennsylvania Institute of Certified Public Accountants

PICPA is a professional association of more than 20,000 CPAs working together to improve the profession and serve the public interest.


Tax Credits• American Opportunity Credit• Hope Credit (for 2008 or earlier)• Lifetime Learning Credit


Tax Deductions• Tuition and Fees• Student Loan Interest Deduction


Get Creative with Saving Ask about tuition discounts and flexible repayment plans• Is there a discount if you pay the entire

semester’s bill up front?• What if you have the money to be directly

debited from your bank account?• Is there an alma mater discount?


Get Creative with Saving• Ask about tuition discounts and flexible

repayment plans• Can your payments be spread over a 12-month

period?• Can payments be extended for a period after

your child graduates?• Are some charges optional?


Get Creative with Saving • Graduate in three years, rather than four• Think about cooperative education• Enroll in a two-year school, then transfer to a

four-year• Live at home – sorry students!• Consider online courses


Get Creative with Saving• Check to see if your employer offers assistance– Up to $5250 of employer-provided education

assistance is tax free• Have grandparents (or others) pay tuition directly to

the college. The payments they make directly to the school aren’t considered gifts for purposes of federal gift tax rules


Returning to School as an AdultThe federal government and colleges base your aid eligibility on last year’s tax records.

If you plan to cut your hours or stop work to go back to school, your income will obviously decrease. Bring this to the attention of the financial aid director.


Tips for StudentsHave a plan in place with your parents before starting school• Be upfront about what they will pay for and

what you will pay for• Try using monthly payments – decide ahead

of time how this will be carried out


Tips for StudentsSet up a budget• List your sources of income• List what you think you might spend in a month:– Cost of books and school supplies– Meals and entertainment– Personal care items– Car expenses/travel


Tips for StudentsCredit card companies aggressively target college students• A credit card is a good way to build credit

and good in case of an emergency• Try using a debit card for everyday

purchases and save the credit card for emergencies


Tips for StudentsCredit card advice:• Beware of teaser rates• Stick with one card• Pay in full every month• Pay on time – avoid late charges• Avoid cash advance• Protect your credit history


Tips for StudentsIt may be a good idea to open an account at a bank near your school of choice. Locate a bank that offers free or low-fee checking for students and has ATMs on or near campus.


Resources• PICPA’s College Savings page

www.picpa.org/collegesavings • 360 Degrees of Financial Literacy

www.360financialliteracy.org • U.S. Department of Education

www.college.gov

http://www.picpa.org/collegesavings

http://www.360financialliteracy.org/

http://www.college.gov/


Questions?

Documents

Take Charge and Reach Your Goals. Financial Tips for College PICPA The Pennsylvania Institute of Certified Public Accountants PICPA is a professional