UW Colleges Money Matters
News
New Stafford Loan Limits
Beginning with Stafford Loans disbursed on or after July 1, 2007, there are now new loan limits in place for students with freshmen or sophomore status. The chart shown below displays the increased annual loan limits:
| Student Class Standing | Dependent Subsidized + Unsubsidized |
Independent Subsidized |
Independent Subsidized + Unsubsidized |
|---|---|---|---|
| First Year Student 0-29 degree credits |
$3500 | $3500 | $7500 |
| Second Year Student 30 or more degree credits |
$4500 | $4500 | $8500 |
Tax Credits
There are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. They are the Hope credit and the lifetime learning credit, also referred to as education credits. For more information about tax benefits, please visit the IRS website at: Internal Revenue Service
Hope Tax Credit
You may be able to claim a Hope credit of up to $1,500 for qualified education expenses paid for each eligible student.
Lifetime Learning Credit
You may be able to claim a lifetime learning credit of up to $2,000 for qualified education expenses paid for all students enrolled in eligible educational institutions. There is no limit on the number of years the lifetime learning credit can be claimed for each student.
Differences between the Hope and lifetime learning credits
There are several differences between these two credits. For example, you can claim the Hope credit based on the same student's expenses for no more than 2 years. However, there is no limit on the number of years for which you can claim a lifetime learning credit based on the same student's expenses.