Episode Details

You've probably heard of the student loan interest deduction. But what you may not know is that this is just one of several tax breaks for tuition and student loans that are baked into the U.S. tax code.

There are also federal income tax advantages for saving for college through 529 college savings plans, Coverdell Education Savings Accounts, and the Education Savings Bond Program. And some states provide state income tax deductions or tax credits based on contributions to 529 plans.

Going to college is getting more expensive every year. But by taking advantage of as many tax breaks for tuition and student loans as you can, you can effectively reduce the overall cost of your post-secondary education. Here are the credits and deductions that you should be aware of.