There's great news for parents and students: the federal government provides a number of tax incentives that can help defray the cost of higher education. These incentives come in a couple of forms: tax credits, which directly reduce the amount of tax you owe; and tax deductions, which reduce the amount of income that you pay taxes on. 

You may qualify to use more than one of the benefits listed below...

• The American Opportunity Tax Credit
• The Lifetime Learning Tax Credit
• Claiming Tax Credits
  
• Tuition and Fees Tax Deduction
• Student Loan Interest Deduction
• The 1098-T Statement
• Taxes on Student Aid and Loan Forgiveness