It’s the American Opportunity Credit, and it provides a maximum tax credit of $2,500 on up to $4,000 of qualified expenses. See IRS pub 970, chapter 2:
Thanks, @BelknapPoint. So the op’s parents would have to pay $4000 of qualifying expenses to get a $2500 credit. . Does anyone know that if loans are taken, are they eligible to take the credit. Sorry, it’s been awhile.
Yes, qualifying expenses paid with borrowed funds can be used to calculate the credit.
The parents MIGHT be able to take the AOTC credit and might get $2500 as a tax credit. Not everyone qualifies, and not everyone owes $2500 in taxes. $1000 of the credit might be refundable.
There are qualifications and limitations.
Of course. That’s why I provided a link to the relevant IRS information.
Yes there are income limits for AOTC and you can only take one education credit at a time. Once the loan becomes payable OP might be able to deduct education loan interest depending on qualifications at the time.
@SOSConcern I don’t intend to quit UM even if it is going to put me in debt. One of the main reasons I chose Michigan is because the value of the degree, especially in the midwest area is undeniable. In all honesty it is going to get me a better job with better pay and there are stats to prove that. But know that I really appreciate your thought, I do! I don’t want to drop out of Michigan either - it’s been my dream to go here for years and I have never been happier at any other point in my life and I love everything about the school and the city, and that to me, paired with the value of the degree is worth it.
Call me crazy because I probably am, but I just can’t do that. I’d be heartbroken and miserable, believe me. I think that alone is enough motivation to keep going. Besides, I don’t want to drop out and get my associate’s in nursing now - I feel like that’s just going to mean more money for a BSN eventually down the road, and with the BSN in Ten initiative, it’s going to be harder to find a job as a two-year RN that will allow me to live and eat, as well as put a dent in student loans, AND find the money to go back to school. I’d rather just do it all at once and have the BS and the BSN and get the good job now. I hope that makes sense! I like what I’m studying now too much to quit it, but I’m also really excited about nursing so I think this is the best route for me. But I do really appreciate your ideas and thank you!! 
@Irishcali no joke, your post made me feel about 9,000x better, especially the part about financing cars. I guess I just needed some perspective! Thank you so much, I’ll definitely be keeping this in mind!
@deb922 @BelknapPoint @twoinanddone @mommdc I had no idea this was even a thing! It’d put a considerable dent in what I pay for school. I’ll look into it with my parents and see what we qualify for. Thanks for the heads up and the information!
So, you will be doing an accelerated BSN. These programs are for students who already have a degree, so yes, OP really does need to finish the one in cognitive science before applying for this one. Competition for these programs is tough, but if you got into UM, you’ll find one that works. Please remember that as a second bachelor’s degree, the only fin aid available is loans. And as popular as the ABSN is, there’s little incentive for the institutions themselves to offer grants and scholarships.
You will make decent money, but counting on 60-70k might be a stretch. My oldest is a new BSN. Her base isn’t quite that high (although she may be there with differentials), but to get that salary, she had to move to a higher COL area. Local base salaries were nearly 10k a year lower.
If the cost of the ABSN is prohibitive, by all means finish you first degree, but look at RN programs at a community college instead of the ABSNs. You take the same boards as a BSN and most places do not pay BSNs more. Your employer would probably even pay for you get the few remaining BSN classes you would need for that credential. It’d be a longer route, but if you’re worried about debt, one to consider. Yes, there are a very few hospitals that wouldn’t hire an ADN, but not many of those are in the midwest. Even the Mayo clinic in Rochester hires ADNs, and you will have a 4 yr degree, which can make a difference.
@ordinarylives Yeah, I considered an RN program at a CC too!. The only thing deferring me is the time it would take, but that’s a logistical thing I’ll have to sit on for a while. However, I do have a schedule all planned out to finish my BS on time and get the pre-reqs for an ABSN finished, so that might cut time in half for an ADN. I also thought that the additional 4yr degree in a semi-related field would make some kind of difference in getting a job. I guess I never knew that it might be easier in the midwest, thanks for that bit of info! I looked into the health professions shortages areas, and a lot of them are in the midwest so I wonder if it’d be easier to get a hospital job there. I’ll definitely look into that. I think whatever I’m going to end up doing is going to come down to logistics, and so I appreciate your advice!!
@aggriffith you can believe what you want. If your parents have claimed you as providing primary support and their income qualifies for the tax credits (as described by others) they should be claiming them. If they haven’t, they can file an amended tax return.
You are believing some things that are not necessarily true. Drinking the UMI Kool-aid.
Look at how much going down the BS road you are going at UMI is going to cost you in student loans. That also is your time invested (so opportunity cost - with getting a nursing degree or living at home and saving up money working somewhere). Then think about that debt realistically, with maturity versus pie in the sky dreams of how much more money you will make with that degree plus the nursing accelerated degree.
Maybe by the time you get your BSN some of the starting salaries will be higher, even in high COL areas (or nursing degree you get through the accelerated program after a Bachelor’s in the program you are in) - if you get into the desired program when you are available to get in.
Working as an Assoc Degree RN you will be making pretty good money. Then you can pay off student loans or cash flow BSN so you don’t add to your debt. If you lived with parent/relative, you can save on expenses.
Please be aware of all your student loans will be continuing to pile up interest (yes they may be deferred to pay back due to being in school, but it doesn’t mean that interest charges are not be racking up).
MI may have a pretty good base salary for nurses. IDK.
Student loans are not bankrupt-able - while if you did borrow on cars/other consumer goods, that is bankrupt-able. But obviously you don’t want any of the debt.
The nursing pay is not going to vary due to where you went to school - it will be based on degree, what kind of nursing experience you have and where there is a high need, supply/demand factors etc.
For example, right now, new BSN’s in Birmingham AL - range is $42 - $47 K starting salary.
Nursing is a growing field, but you are taking incredible risk counting on getting into accelerated program. Have you personally checked to see what admitting stats of students/type of UG degree etc has been to see if you would be competitive to get in?
Getting into debt is a whole lot easier than getting out. Title of a June 2016 real estate article in the paper (Phillip Molmar, The San Diego Union-Tribune) - ‘Want to own a home? Say no to student loans’. In the article, it said 83% of younger millennials (those born from 1990 to 1998) said they could not save for a down payment on a home because of student debt.
My DD has BSN w/o any debt. She is still using one of our cars. Moving into a nice 2 BR/2 BA apt with a friend who has a college degree and a job in the same city. She is saving for her own car. We have been paying for her car insurance but she will be paying it with her cash flow.
Debt is very crushing.
Please, please think about the here and now and not pie in the sky ideas.
People are advised to have an emergency fund. When you have debt you are below zero, so even scraping together some ‘emergency money’, you are way behind being ‘solvent’. Do you want to rely on your parents for emergencies in your later 20’s or do you want to be self sufficient?
I can bet you jobs are more plentiful and comparable or higher in pay with Assoc in Nursing than your BS in current major. With Assoc in Nursing, can do a number of degree plans (on line or flexing around work schedule) to finish Bachelor’s - and go on to higher things like nurse practitioner if desired. Think, think, think. It is one thing to have the other BS degree if you don’t have the debt, but adding crushing debt is going to be regretted when it is time to pay back and you see what principal and interest is.