You can use these benefits you get back some of the costs of tuition or interest paid on student loans, allowing you to maximize your college savings.

Educations expenses and Tax Credits – You can use two tax credit to help with the cost of certain items; such as books, supplies, equipment, fees and tuition. You are able to claim up to $2,500 per student year, for the first four years of school with the American Opportunity Credit. The Lifetime Learning Credit will allow you to claim up to $2,000 Per student year for any fees or tuition that were required to attend school.

Even if you are not required to file a federal tax return, as a student you should as the additional credits for students can put money in your pocket.

Deducting Student Loan Interest – If you took out student loans for yourself you are able to deduction the amount of interest paid in the tax year on those loans. This benefits to any loans there were obtained for higher education and not just federal student loans. There is a maximum deduction of $2,500 per year for student load interest.

Paying for College with IRA Disbursements – You are able to take disbursements from IRA plans to pay for higher education expenses, for yourself, spouse, children and grandchildren. Any amount withdrawn will be subject to federal income taxes, but are not subject to early disbursement penalties.