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Hope Scholarship – Should You or Should You Not

by linkroll

posted in Reference and Education : Financial Aid

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So you are done with schooling and want to reduce your education expenses, we have an incredible solution for you. People who are trying to get their budgets down by wanting to reduce their educational expenses, the hope scholarship can be a definite alternative. There is yet another such scholarship which is the lifetime learning credit.

These are some of the wonderful offerings of Uncle Sam. However, you can use both of these scholarships at the same time. And they also differ in their eligibility, so it is important to sort out which one suits you the best.

To be frank, these scholarships are more of a tax credits or tax relievers. So basically, when you are applying for a hope scholarship, you will not get any deductions on your college expenses but this scholarship will only help reduce the tax liability. So they help you in saving your tax. However, if your tax is lower than these credits then you can even go ahead and use them to an extent where your tax can be zero.

To know how it works, read further. The hope scholarship is provided to all those who are at least enrolled in the school for half the academic year. This scholarship is only available for the two-years of the post school academia.

To be eligible for the hope scholarship, you need to have a clear and clean criminal record, anyone with drug conviction won’t be allow to enroll for this scholarship. The hope scholarship is available for the amount of $1800 which is dependent on per student basis. Another important eligibility is that if you are dependent on any other person for the tax return then you won’t be eligible for the hope scholarship.

To get this scholarship, your education institution will give you a form 1098-T that will show you with the payments to be made. This is how you can decide whether or not, you should go for the hope scholarship. For instance if you are a fresher trying to get an undergraduate degree and the expenses involving your education is going up to $1000, then you are the right candidate for opting the hope scholarship.

So this way the hope scholarship will give you a tax credit of about $1000 which can go on for the first two-years of your schooling and then for the last year you can go in for the lifetime learning credit.

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