Federal Tax & Loan Payment Information
The Higher Education Opportunity Act [h2]
One of the Higher Education Opportunity Act’s (HEOA) required disclosures is to share federal tax educational credit information with students, including several tax benefits for families to assist with college expenses. We encourage the tax filer to consult a qualified tax adviser, the Internal Revenue Service website or by calling 800.829.1040. The IRS publication 970 “Tax Benefits for Education” provides an informational overview of these higher education tax incentives.
American Opportunity Tax Credit [h2]
The American Opportunity Tax Credit (AOTC) is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. The maximum annual credit is $2,500.
The Lifetime Learning Credit (LLC) is for qualified tuition and related expenses paid for eligible students enrolled in an eligible higher education institution. There is no limit on the number of years you can claim the credit of up to $2,000 per tax return.
Tax filers must meet eligibility criteria and cannot claim both the AOTC and LLC on the same tax return for the same student or qualified expenses. For more information, visit irs.gov.
Loan Billing and Repayment Information
The U.S. Department of Education is your student loan lender if you received Federal Direct Student Loans while attending New York Institute of Technology. The Federal Family Education Loan Program (FFELP) ended July 1, 2010. If you received FFELP loans through a local lender or servicer, your loan may have been sold to the Department of Education, a guaranty agency, or a commercial lender.
We encourage you to carefully review all correspondence you receive from a lender. You can view your federal student loan history and loan servicer information by logging into your studentaid.gov account. For more information, visit the FSA Customer Service Center for Loan Servicer Contact Information for Student Loan Borrowers.
- Cancellation and Deferment Options for Teachers
- Nursing Education Loan Repayment Program
- Loan Repayment/Forgiveness Programs for Medical and Health Professions
- Students receiving federal education loans may obtain deferments while serving in the Peace Corps; under the Domestic Volunteer Service Act; and as a volunteer for a tax-exempt organization of demonstrated effectiveness in the field of community service.
Federal Student Loan Consolidation Programs have been popular in recent years. With the changes in the federal student loan programs in the past few years, we would anticipate that more students might want to utilize this program so that all of their loan accounts are consolidated with one lender.
- Federal Student Aid Website
- 800.4.FED.AID (800.433.3243)
- TTY (for the hearing impaired): 800.730.8913
- Locations without access to 800 numbers: 319.337.5665
How Aid Is Applied [h2]
Once you accept your financial aid offer, any NYIT merit scholarship funds will be credited directly to your account shortly after the end of the drop/add period. If you have completed all the required processing steps for a Federal Pell Grant and/or Federal Supplemental Educational Opportunity Grant, it will also be credited to your account after the end of the drop/add period.
If you receive a Federal Direct Loan, the Department of Education will send the funds directly to NYIT each semester for one-half the amount borrowed minus fees. Students applying for their first Federal Direct loan are required by law to complete an entrance interview session before receiving the loan proceeds. Sessions must be completed online.
Federal Work-Study earnings are not credited to the students’ accounts; students are paid by check bi/monthly. If you have been awarded and have accepted Federal Work Study funds, report to the Office of Student Employment once classes have begun. You should plan to have sufficient funds available to meet incidental, personal expenses until you receive your first paycheck.
These awards will remain “tentative” until NYIT and the New York State Higher Education Services Corp (HESC) confirms your eligibility.
Please visit the National Center for Education Statistics to view financial aid statistics for NYIT (there is a lag in posting).