There are several ways to reduce the amount that going to a college or career school will cost, so you can try to avoid borrowing too much.

Tax Breaks
You or your parents might qualify for a Hope tax credit or Lifetime Learning tax credit. IRS Publication 970, Tax Benefits for Higher Education, explains these credits and other tax benefits. Certain borrowers can also take a tax deduction for student loan interest. This benefit applies to all loans used to pay for postsecondary education costs. The maximum deduction is $2,500 a year. For more information, you can go to the IRS Web site at www.irs.gov, or call the IRS at 1-800-829-1040. TTY callers can call 1-800-829-4059.

Lower-Cost Schools
If you plan on working toward a bachelor’s degree, you might want to consider starting out at a two-year community college and then transferring to a four-year school. Community colleges are partially funded by local and state taxes and are therefore usually less expensive than four-year schools. (Some four-year schools are also partially funded by local and state taxes and can be less expensive.) You’ll want to make sure the courses you take at your community college will transfer to the four-year school you want to attend and that those courses will count toward your bachelor’s degree.

Working Or Volunteering
You can work part time to pay for some of your costs. If you do, make sure you save enough time for studying and be sure your work and school schedules don’t conflict.

AmeriCorps is a program that allows participants to earn education awards in return for national service. For more information, contact the Corporation for National Service:

     Corporation for National Service
     1201 New York Avenue, NW
     Washington, DC 20525
     1-800-942-2677
     www.americorps.org

The U.S. Armed Forces also offer financial aid opportunities if you choose to serve. For more information on recruitment incentives, visit the U.S. Department of Defense Defenselink Web site at www.todaysmilitary.com. Click on "What You Get" at the top of the site. Then go to “College Help.“ You can also contact your local recruiter for information.