School, on Sale Now!

NEA Today, Apr 2006

Heading back to class doesn't necessarily require breaking the bank.

If you're thinking about going back to school for additional coursework, there are ways to cut costs. Consider these options:

LOOK INTO A VARIETY of education vendors. A local community college or state school may be inexpensive, but a private university may offer a special program or rate for teachers and other adults. Check out online schools as well, which may offer more flexible scheduling.

SEE IF YOUR EMPLOYER OFFERS any education assistance, such as tuition or book reimbursement. Many require that you earn at least a B grade to get reimbursed, so make sure you hit those books hard.

TAKE ADVANTAGE OF AVAILABLE tax credits that reduce your tax bill dollar-for-dollar. The Lifetime Learning Credit, for example, offers up to $2,000 if you qualify.

GET THAT TAX DEDUCTION. If you don't qualify for the Lifetime Learning Credit, you might be able to deduct up to $4,000 paid for tuition and fees, reducing the amount of income subject to taxes. (Income limits apply.) On the other hand, some student loan interest may be deductible-if you're attending school at least half-time in a degree program and meet income requirements.

CONSIDER TAPPING YOUR IRA only as a last resort. (You don't want to rob yourself of retirement savings.) One plus, though, is that you won't get hit with a 10 percent early withdrawal penalty from an IRA if it's used for your qualified higher ed expenses.

CHECK OUT NEA MEMBER BENEFITS for loans. Call 800-637-4636.

www.neamb.com