What Can Parents Do?
Parent Loans: When Savings and Current Income Are Not Enough There are many educational loan products available, including several parent loans. Two of these include: Federal Parent Loan for Undergraduate Students (PLUS) Loan N Approval based on credit history (not income) N Affordable interest rate N Flexible payments N Deferred repayment option N No set loan limit N Option to add a co-signer or for the student to receive additional Federal Stafford Loan funds for denied applicants For more information or to apply online, please visit www.studentloans.gov. Massachusetts Educational Financing Authority (MEFA) Undergraduate Loan N Approval based on credit history and debt-to-income ratio N Variety of loan programs N Affordable interest rates N Co-signer release option N Flexible payments N Deferred repayment option N No set loan limit For more information or to apply online, please visit www.mefa.org.
Tax Credits: Receive Tax Credits or Deductions for Educational Expenses When you pay for tuition and fees, you or your parents may be able to recover some of these expenses through federal tax credits or deductions. Tax credits and deductions have included the Hope Scholarship Tax Credit, Lifetime Learning Tax Credit, Tuition & Fees Deduction, and Student Loan Interest Deduction. IRS Publication 970, available at www.irs.gov, provides more detailed information.