Qualified Educational Expenses
To qualify as an eligible loan, it must have been taken out solely to pay the costs of attending an eligible educational institution for an individual during a period in which the individual is a qualified student. Eligible costs include:
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Tuition
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Room and board
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Fees
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Books and equipment
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Other necessary expenses (including transportation)
Such expenses must be reduced by the following:
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Income excluded from employer-provided educational assistance,
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Income excluded from U.S. savings bonds used to pay higher education expenses,,
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Non-taxable distributions from Coverdell ESAs, and,
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Scholarships, allowances, or other payments (such as distributions from Sec. 529 plans) that are excludable from gross income.
Eligible Educational Institution
Includes colleges, universities, and vocational schools eligible to participate in the Department of Education student aid programs (in other words, virtually all accredited public and private post- secondary schools). In addition, institutions conducting internship or residency programs leading to degrees or certificates awarded by an institution of higher education, a hospital, or a healthcare facility which offers postgraduate training also qualify.
Eligible Student
Is one enrolled in a degree or certificate program and who is at least a half-time student. What constitutes half the normal course load will be determined by the definition of the school being attended. Generally, a full-time student is one carrying at least 12 units.