The Tax Cuts and Jobs Act changed the following provisions:
Federal Student loans: Stafford Loans, Perkins Loans and Grad Plus Loans that are discharged due the death or permanent disability of the student borrower are no longer considered income when discharged. Effective for tax years 2018-2025.
Federal Parent Plus Loans: Loans that are discharged due to the death of the student for whom the loans were used are no longer considered income when discharged. Effective for tax years 2018-2025.
529 College Savings Plans: may be used for up to $10,000 of K-12 tuition costs per year, per student. Effective for tax years 2018-2025.
529 College Savings Plan Rollovers: Funds may be rolled over into ABLE accounts. Effective for tax years 2018-2025.
HELOC Loans: Interest paid on HELOCs (Home Equity Lines of Credit) are no longer tax deductible as an itemized deduction. Effective for tax years 2018-2025. This was a moderately popular way of financing college costs for middle income families.
American Opportunity Tax Credit: Up to $2,500 of tax savings per year for the first 4 years of college, totaling up to $10,000 of actual savings. Not changed.
Lifetime Learning Tax Credit: Up to $2,000 of tax savings per year for all years after 1-4. Not changed.
