This story about creative financing for college ran over the weekend in my local paper. The article does a great job of outlining some of the financial challenges families are facing in the midst of this country’s economic crisis. It was good to see that staying in school is still a priority for the two families featured in the piece, but rather heart-wrenching to read the real life stats. For example, did you know that, across the board, the value of savings in 529 Plans has dropped 21% over the past year? And the market drop isn’t just hitting parents who were saving for their kids’ future. It is also hitting universities and their endowment plans, which are a major source of funding for university-based aid like scholarships and tuition reductions. The article cites ...

A recent survey of more than 1,000 American adults, commissioned by CCH and conducted by GfK Roper, found that most taxpayers don’t know which tax breaks are most beneficial to them, including higher education tax credits and deductions. Remember my post from several weeks ago outlining the tax credits and tax deductions for higher education expenses? Well, according to the survey, most people thought the deduction would save them more in taxes — when in fact, the tax credit offers much bigger savings. The Results: 41 percent or respondents said the higher education deduction saves the most 16 percent said the Hope Credit would save the most 14 said the Lifetime Learning Credit is the biggest tax break 29 percent said they didn’t know The reality: Either the $2,00...

It’s tax time and if you’re a student, there is some good news for you. The Federal Government offers a host of tax credits and deductions for college and graduate students — or your families, if your parents still claim you on their tax returns. Here’s a look at some of the ways you can save money — or get money back — on your tax returns in ‘09. Tax Credits A tax credit directly reduces your tax liability, often times regardless of your income tax bracket. >> Hope Scholarship Tax Credit If your parents claim you as a dependent, they can get a tax credit of up to $1,500 per year toward the first two years of college. To be eligible, your parents must have paid at least that much toward tuition and fees for your education expenses, and yo...