Deduction for Higher Education Loan 80E

1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education or for the purpose of higher education of his relative.

from above main points to avail the deduction are

1. Eduction loan should be taken by Assessee.
2. The repayment should be out of income chargeable to income tax means if repayment is made from income exempted from income tax than deduction will not available.
3. The amount eligible for deduction is repayment of eduction loan interest.
4. There is no limit for amount of repayment of interest ELIGIBLE FOR DEDUCTION
5. This deduction is available in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest is paid by the assessee in full, whichever is earlier.
6. Initial Assessment year means previous year in which assessee starts paying the interest amount.
7. The loan should be taken for the purpose of higher eduction,and higher eduction means
   
   1. full-time studies for
      
   2. any graduate or post-graduate course in
      
      1. engineering,
         
      2. medicine,
         
      3. management or for
      4. post-graduate course in applied sciences or pure sciences including mathematics and statistics;
8. The loan should be taken from any financial institution or any approved charitable institution.
9. The loan should be taken for higher study of himself or studies of relative
10. Relative under this section means the in relation to an individual, means the spouse and children of that individual.
11. Earlier to previous year 2006-07 the above deduction is available for loan taken and repaid by the assessee only but after finance act 2007 ,"the or for the purpose of higher education of his relative"
12. There is no deduction available for repayment of principal ,this deduction is available to only for interest.
13. This deduction is available for individual only and not for other type of assessee .
14. The loan should be for pursuing higher studies means its includes loan taken not only for tuition or college fees only but other incidental expenses for pursuing such studies like hostel charges,transport charges etc etc,
15. There is no condition that the course should be in India .

College Admissions: Hard times to get loan

Temple University junior Reava Potter never expected the crumbling housing market to affect her college education.

But the fallout has led to a credit crunch that has made it harder for students like Potter to get the student loans she needs.

"What is now happening in our economy has made it harder to take out a loan and it now takes a longer time to get a loan than normally," Potter said. "They have such high standards for credit that it’s ridiculous. I can’t do it myself, and my parents can’t do it due to their credit score. It’s almost impossible."

A spokeswoman for Sallie Mae said some loan companies have stopped giving to students altogether.

"Some lenders have stopped providing private education loans due to the credit crunch," company spokeswoman Patrica Nash Christel said. "[They] have dropped out of the federal student loan program or cut back on the types of schools they would lend to."

Despite the problem, Elizabeth Reap, director of student financial services at Temple, said she has not seen a real influx in students not coming to Temple due to financial dilemmas.

But another finance official at the university said incoming freshmen classes are increasingly made up of higher-income families.

"Too many people want to come to Temple. Tuition raises yearly to keep up with inflation technology and other schools. It’s hard to see Temple doing anything like that," the official said, referring to lowering tuition for students who can't get enough financial aid to pay for Temple.

While Potter requested a certain amount this year, she said loan companies are being stingier than in the previous three years.

"Now, I have to find another loan to cover my other expenses," Potter said. "It’s frustrating and especially for students who are trying to better themselves. This should be the last of my concerns."

Controversial Admissions Policy Proposal Could Shake Up University of California System

The biggest change in how the University of California system evaluates prospective applicants in 10 years could come from a major administrator-proposed revision to the system’s admissions policy, allowing schools to depend less on test scores and more on individual student evaluations when making admissions offers, according to an article in The Chronicle of Higher Education (“U. of California Proposes Sweeping and Controversial Admissions Changes”).

The new policy would give more discretion to admissions officials at each school, David Longanecker, president of the Western Interstate Commission for Higher Education, told the Chronicle. Longanecker also said that the move would bring the state’s college admissions policies more in line with those of private and public research universities.

Advocates say that the system’s current strict eligibility formula doesn’t adequately consider deserving students from minority or low -income backgrounds who have high GPAs, but who didn’t take the correct college-prep classes or the SAT II.

Under the newly proposed rules, students would no longer have to take this additional test or as many required college-prep courses. Administrators would be allowed to evaluate applicants on an individual basis and would be able to forego the system’s current formulaic admissions methods that depend solely on test scores or other pre-set criteria.

Those administrators who are in favor of the change say that while the new policy would only marginally affect the largest campuses, such as U.C. Berkeley and UCLA, those like the U.C. Riverside and U.C. Merced campuses, which are less selective, may see a significant shift in the composition of their freshmen class.

Critics contend that fewer students with the highest grades and test scores would be guaranteed a spot at a California state school; a factor that may violate the state’s constitution which requires that the UC system admit the top 12.5 percent of California’s high school students.

“It's a change in substance as well as in symbol,” said William Drummond, a Berkeley journalism professor. “Ever since the 1960s and the master plan, we’ve been telling kids from primary school on up that if you work hard, we will guarantee you a place. Now we’ll just guarantee that you’ll be reviewed.”

College Offers Students a No-Cost, No-Student-Loan Education With Funds From Its $1.1-Billion Endowment

Berea College is drawing the attention of lawmakers for its no-frills approach to education and its free tuition policy.
The private Kentucky college — founded 150 years ago to educate freed slaves and “poor white mountaineers” — accepts only applicants from low-income families and charges no tuition, according to an article in The New York Times (“With No Frills or Tuition, a College Draws Notice,” July 21, 2008).
Every Berea student is awarded a four-year tuition scholarship and the school doesn't offer student loans.
School Spends Endowment on Students, Not on High-End Amenities
Despite its $1.1 billion endowment Berea, unlike other colleges with large endowments, has no football team, coed dorms, hot tubs, or rock climbing walls. Students eat food from the college’s own farm, make the furniture used to furnish the school, and are required to work 10 hours a week in an on-campus job.
Although Berea keeps costs down with its streamlined approach to higher education, without tuition revenue to supplement its funding, Berea relies on endowment income to cover 80 percent of its $43 million education and general budget, and about two-thirds of its $55 million operating budget.
“You can literally come to Berea with nothing but what you can carry, and graduate debt free,” says Joseph Bagnoli, the school’s associate provost for enrollment management. “We call it the best education money can’t buy.”
A Push to Use Endowments for the Public Good
News of Berea’s unusual approach to higher education is spurring debates about whether the nation’s wealthiest universities are doing enough for the general public to warrant their tax-exempt status, or if they’re simply hoarding money to serve an elite few, writes New York Times reporter Tamar Lewin.
In January, the Senate Finance Committee requested detailed endowment and spending data from the 136 colleges and universities with endowments of at least $500 million, with an eye toward possibly forcing them to spend at least 5 percent of their assets each year, as foundations are required to do.
Dozens of wealthy colleges have since increased their financial aid to low- and middle-income students, in some cases, replacing loans with grants. More than three-quarters of the students at Berea already receive Pell Grants.
“You see some of these selective liberal arts colleges building new physical education facilities with these huge sheets of glass and these coffee and juice bars, and charging students $40,000 a year, and you have to ask, does this contribute to the public good, or is it just a way for the college to keep up with the Jones?” says Berea’s president Larry Shinn.
He adds, “We are a tax-exempt institution, so I think the public has a right to demand that out educational mission be at the heart of our expenditures.”

Student Loan Rate Likely to Exceed 8 Pct.

Despite the government’s effort to alleviate the financial burden coming from college tuition fees, the student loan interest rate for the second semester of this year is expected to exceed 8 percent.

The Ministry of Education, Science and Technology said yesterday that the student loan rate, which stood at 7.65 percent in the first semester, is likely to hit the 8-percent mark in the next semester, as the five-year treasury bond, which has a decisive impact on student loan rates, recently soared.

The five-year treasury bond rates jumped from around 4 percent in the first half of this year to about 6 percent recently, with little sign of going down again. Korea Housing Finance Corporation, responsible for student loans, is also adding pressure to raise loan rates, citing the need to compensate for the accumulated losses.

Against this backdrop, the ministry believes that the student loan rate is most likely to go up as much as 8 percent.

A ministry source said, “We cannot cut the student loan rate because it is decided by the market rates, rather than by the government, but we’re working to reduce the increase margin.”

Normally, the ministry announces the student loan rate for the second semester in early July every year. It is, however, planning to determine the rate late July this year, after watching the financial market situation.

In June, the ministry disclosed its plan to expand government assistance to reduce the financial burden that students and their families suffer from paying high interest.

It promised to expand interest-rate assistance from 2 percent to 3 percent for the bottom 30 to 50 percent of the income deciles, and extend 1-percent assistance to the bottom 60 to 70 percent, which has been excluded from state assistance.

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Student Loans For People With Bad Credit – For Sustained Studies

Student loans for people with bad credit include in their fold all those applicants who have damaged their record of making payments due to some cases of late payments, arrears or defaults or may not be at all having a credit history yet. These are easier loans as there are many options in borrowing the money for sustained higher studies in collages. If you apply for Federal loans, your bad credit history will not at all come in the way because of governmental policy of providing higher education to all the people. Federal loans come in the options of Stafford loans, Perkins loans and PLUS loans. No enquiries of past payments on loans or credit cards will be made on the applicants. Moreover, low interest rate also is ensured. An added advantage is that the applicant has a flexible repayment schedule and will start repaying only after completing the collage education and starts earning.

In case you do not qualify for these loans, then you can take out Student Loans For People With Bad Credit from online private lenders. They also give you the option of repaying an amount after you starting earning from a regular job after your collage term. These lenders will offer you a persona loan in secured or unsecured option.

If you intend to borrow the money from private lenders, then also your bad blemished history will not a big hurdle, if you take out the loan along with a co-signer having an excellent or good credit history for low rate of interest and fast approval.From a bunch of such lenders select one in keeping terms and conditions in mind. Surely your collage studies are not going to suffer due to the availability of the loan.

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