For the first time in history, the number of jobless workers age 25 and up who have attended some college now exceeds the ranks of those who settled for a high school diploma or less.
Out of 9 million unemployed in April, 4.7 million had gone to college or graduated and 4.3 million had not, seasonally adjusted Labor Department data show.
The million dollar Q remains: is college still worth it?
Did you know that apart from a host of financial aid, students taking up higher education could actually take advantage of the tax benefits available to them?
Take for example the American Opportunity Credit. This was established by the American Recovery and Reinvestment Act and is available through to the end of 2012. Single students with a modified and adjusted gross income of $80,000 and married students with a combined income of $160,000 or less can qualify for a pretty nifty tax break of $2,500 a year. This money can be claimed to buy books, equipment, apparel and other supplies related to the course.
Then there is the Lifetime Learning Credit. It provides a 20% tax credit for the first $10,000 that is fully creditable against a taxpayer’s tax liabilities. The max limit is $2,000 per student per eligible student per family, and covers tuition and fees paid for education. It does not, however, cover financial expenditures like insurance, boarding, athletics or other student activities.
And then let’s not forget about tax deductions.
First up are the Tuition and Fees Deductions. You can receive up to $4,000 if your total income is less than $65,000 ($130,000 for joint filers) and $2,000 if you earn between $65,000 and $80,000 (up to $160,000 for joint filers). These deductions are available for anyone who pays tuition fees for a post-secondary education and for parents who claim the student as their dependent.
If you took out a student loan to finance college education, then you are eligible for a Student Loan Interest Deduction that will deduct whatever is lesser: $2,500 or the amount of interest paid per year.
Do note that the aforementioned tax deductions may get affected by the budget cuts in the coming school years. This is already the case for student loan interest deductions, where interest will be deductible only for the first 60 months of repayment after 2012.
Oh, and by the way: no tax breaks are available for those who are married but filed their tax returns separately. That means no American Opportunity Credit, Lifetime Learning Credit and tax deductions for separate filers.
The typical college graduate earns $570,000 more than the average person with only a high school diploma over her lifetime. That makes college the best big investment on the market, Michael Greenstone and Adam Looney find in this remarkable report on the value of a higher education.
Of the 22 million Americans with master's degrees or higher in 2010, about 360,000 were receiving some kind of public assistance, according to the latest Current Population Survey released by the U.S. Census Bureau in March 2011.
The number of PhD recipients on food stamps and other forms of welfare more than tripled between 2007 and 2010 to 33,655, according to an Urban Institute analysis cited by the Chronicle of Higher Education.
The boost in PhD recipients receiving food stamps is just the latest indication of how Americans are struggling in a down economy - even having multiple degrees isn't a guarantee against poverty.
Learn how to fill out the FAFSA in seven easy steps and feel free to use this video as a helpful companion while you work on your FAFSA.
Pell Grants are only awarded to low- and middle-income undergraduate students who have not earned a bachelor’s or professional degree. For many students, these grants are the foundation of their financial aid package, to which other forms of aid are added.
Unlike student loan, these federal funded grants are free money that do not have to be repaid; making it one of the most preferred ways to get money for college.
According to a release issued by Montgomery County Community College, the school is hosting a Free Application for Federal Student Aid (FAFSA) Completion Workshop on Wednesday, April 11, at noon and 1 p.m. at the Norristown Resource Center at One Montgomery Plaza in Norristown. The workshop is free to attend.
All college-bound students are invited to receive assistance in completing the FAFSA. Space is limited, so interested students should pre-register at http://www.mc3.edu/admissions/paying
High school students looking to file for the government's Free Application for Federal Student Aid (FAFSA) have been paying $79.99 to file with Student Financial Aid Services, Inc.
There's only one problem: Student Financial Aid Services is not affiliated with FAFSA (Fafsa.gov). Its similar domain name (Fafsa.com) led some students to believe otherwise. There are many financial aid services similar to Fafsa.com. Some are cheaper, and others are more expensive, but none of them are necessary.
