1. Utilize Tax Breaks

Depending on your situation, you may be able to take advantage of one or more tax breaks:

• American Opportunity Tax Credit: If you haven’t attended college yet, you may be eligible for a credit of up to $2,500 per year for your first four years in school. This includes 100% of the first $2,000 in qualified education expenses and 25% of the next $2,000. Note that only $1,000 of the credit is refundable.
• Lifetime Learning Credit: If you no longer qualify for the American Opportunity Tax Credit, you can still get up to $2,000 each year with the Lifetime Learning Credit. This covers 20% of the first $10,000 you spend on qualified education expenses each year. Keep in mind that this credit is not refundable.
• Student Loan Interest Deduction: If you take out student loans, you may be able to deduct up to $2,500 in interest paid on those loans each year. However, if you defer your payments until after graduation, you won’t be able to take advantage of this tax break until then.

It’s important to note that all of these tax breaks come with limitations, such as income limits and restrictions on expenses. Consult with a tax professional to determine your eligibility.

2. Fill Out the FAFSA

The Free Application for Federal Student Aid (FAFSA) is your gateway to federal financial aid, including student loans, grants, and work-study jobs. It’s also used by your school to determine your eligibility for school- and state-based aid.

Make sure to fill out the form each year before the annual deadline—check with your financial aid office for the exact date. Some forms of financial aid are on a first-come, first-served basis, so the sooner you fill out the application, the better your odds of getting assistance.

As an independent adult, you won’t need to provide any financial details from your parents, which should make the process go more quickly.

3. Ask Your Employer About Tuition Assistance

Many employers offer tuition assistance as an employee benefit, usually in the form of a reimbursement. The IRS allows employers to provide up to $5,250 in tuition assistance each year, completely tax-free.

If you’re not familiar with your employer’s education benefits, contact your human resources manager to learn more. Note that some employers may require you to work for the company for a minimum amount of time before you can take advantage of the perk.

Also, keep in mind that you may not be able to get reimbursement for certain expenses, including meals, lodging, transportation, computers, and courses involving sports, games, or hobbies unless required for the degree program or they have a reasonable relationship to the employer’s business.

4. Apply for Scholarships and Grants

Check with your school’s financial aid office to see whether scholarships and grants are available to you. Many colleges and universities offer aid based on merit or financial need.

You can also seek out scholarship and grant opportunities from private organizations. Websites like Scholarships.com and Fastweb maintain databases of millions of scholarship and grant programs.

It may take time to research and apply for these financial aid opportunities, but the effort can be worthwhile if it can reduce your need for student loans to finance your education.

5. Choose a Less Expensive School

While it may be tempting to attend a school with a household name, the sticker price of tuition isn’t always indicative of the value you get for your money.

Do your research before you choose a school to get an idea of which schools are best for your chosen field of study and whether you can get a quality education without breaking the bank. If you don’t yet have a bachelor’s degree, it may even be worth it to attend a community college for the first couple of years to get your general education courses out of the way.

Additionally, make sure you select multiple schools when filling out the FAFSA, so you can easily compare financial aid award offers from each one to determine which will make your college experience the most affordable.

Build Your Credit to Improve Financing Options

In addition to tuition and other educational costs, you’ll also need to pay for various living expenses while you attend school. If you’re not planning to continue working full-time while you attend school, you may need to take advantage of other credit options to stay afloat.

As you begin or restart your college career as an adult, monitor your credit to gauge your overall credit health and make improvements to build and maintain a good credit history. That way, if you need to rely on a personal loan, 0% intro APR credit card, or some other form of credit to make ends meet, you’ll have a better chance of getting approved with favorable terms.