• The American Opportunity Tax Credit (AOTC) helps offset the cost of post-secondary education for students or their parents (if the student is a dependent).

  • AOTC authorizes a $2,500 annual tax credit for qualifying tuition expenses, tuition fees, and teaching materials.
  • Room and board, medical expenses, transportation and insurance are not eligible, as well as the corresponding expenses paid by the 529 plan.
  • Your Modified Adjusted Gross Income (MAGI) must be $80,000 or less ($160,000 if you are married) to qualify for a full loan.