Financial Aid Resources

The American Opportunity Tax Credit

The credit offsets what you pay for the first four years of higher education by reducing the amount of income tax you pay. This credit provides up to $2,500 per student and up to $1,000 of the credit can be refunded if your credit is more than you owe in taxes. The amount you are eligible for varies depending on your income, how much you spent on higher education expenses and how many eligible students are in your family.

The Lifetime Learning Tax Credit

People not eligible for the American Opportunity credit may be eligible for this tax credit. It is targeted to students who want to return to school, as well as college juniors, seniors, graduate and professional degree students. The student may be enrolled full-time, half-time or less than half-time and are not required to be in a degree-seeking program.

Tuition and Fees Tax Deduction

If you do not qualify for the American Opportunity or the Lifetime Learning tax credits because of income limitations, you may be eligible for the tuition and fees deduction. This deduction allows you to reduce the amount of your income subject to tax by $4,000, and it can be claimed even if you do not itemize deductions on your taxes.

Education Loan Interest Deduction

Taxpayers who have taken out loans to pay the cost of attending an eligible educational institution for themselves, their spouse or their dependent(s) generally may deduct the interest paid on these loans. To be eligible, a loan must have been used to pay tuition, fees, room, board and books expenses at an eligible educational institution. The student must have enrolled at least half-time in an undergraduate or graduate program leading to a degree or certificate.

The deduction is not only for federally guaranteed loans, but for any loan meeting the eligibility requirements including loans issued by schools, banks and not-for-profit associations. The deduction amount varies depending on your income, with the maximum deduction being $2,500 each year.

Coverdell Education Savings Accounts

Eligibility requirements restrict joint tax filers with adjusted gross income of $220,000 or more from participating ($110,000 or more for single filers). Withdrawals from the education IRA may also be tax free if the funds are used toward the beneficiary's qualified higher educational expenses, which can include tuition, books, room and board, and required supplies.

Qualified Tuition Plans

Save for tuition and certain room and board charges — and get help from your parents, grandparents and friends! With qualified tuition plans, you can save for your education without being taxed until the money is withdrawn.

Prepaid tuition plans are college savings plans guaranteed to increase in value at the same rate as college tuition. They are exempt from federal income taxes and, in some cases, from state and local income taxes. The value of this plan is counted as an asset of the owner when completing the FAFSA, unless the owner is a dependent student.

The 529 College Savings Plan allows you to save for college tax-free and tends to have a low impact on the need-based financial aid eligibility. Unlike prepaid tuition plans, there is no lock on tuition rates. The value of this plan is counted as an asset of the owner when completing the FAFSA, unless the owner is a dependent student.

To receive a TEACH Grant at the University of Dayton, you must meet all of the following requirements:

• complete the Free Application for Federal Student Aid (FAFSA), although you do not have to demonstrate financial need, and
• be a U.S. citizen or eligible non-citizen, and
• be enrolled as an undergraduate or graduate student, and
• meet basic aid eligibility requirements of satisfactory academic progress, and
• have successfully completed EDT 110 (undergraduate students), unless otherwise waived, and have been accepted and enrolled in a program of study designated as TEACH Grant-eligible (see full list of eligible programs), and
• have a cumulative GPA of at least 3.25 on college coursework to receive a grant for each subsequent term, and
• maximum grant eligibility is based on full time attendance (12 credit hours/term undergraduate; 6 credit hours/term graduate) The TEACH grant is pro-rated for part time enrollment, and
• sign a TEACH Grant Agreement to Serve form, and
• complete the Entrance Counseling annually

The University of Dayton offers a number of programs that are TEACH grant eligible.

Eligible programs offered for the 2025-26 academic year

Undergraduate Level Programs

• Adolescence to Young Adult Education (B.S.E.) in these areas:
  • Earth Sciences
  • Earth Sciences/Chemistry
  • Earth Sciences/Physics
  • Integrated Sciences
  • Life Sciences/Chemistry
  • Life Sciences/Earth Sciences
  • Life Sciences/Physics
  • Physical Science: Chemistry
  • Physical Science: Physics
  • Physical Science: Physics/Chemistry
  • Integrated Mathematics
  • Integrated Social Studies
• DUAL Middle Childhood Education/Intervention Specialist (B.S.E.)* in these areas:
  • Mild/Moderate Needs & Language Arts & Reading
  • Mild/Moderate Needs & Mathematics
  • Mild/Moderate Needs & Science
  • Mild/Moderate Needs & Social Studies
• DUAL Pre-Kindergarten to Grade 5 (B.S.E.) & Intervention Specialist (B.S.E.)
• Intervention Specialist (B.S.E.)
• Middle Childhood Education (B.S.E.)* in theses areas:
  • Mathematics
  • Science
  • Social Studies
• World Language Education (B.S.E.) in these areas:
  • French
  • Spanish
• B.S. in Education, Teaching English to Speakers of Other Languages undergraduate certificate
• Art Education (B.F.A.)

*No new students will be admitted to this degree program for the 2025-26 academic year.  

Graduate Level Programs**

• Educational Leadership (M.S.E.), concentration in Literacy
• Educational Leadership (M.S.E.), with P-12 Teaching English to Speakers of Other Languages (TESOL) graduate endorsement

**Eligible students must be accepted into the degree program.

Students who want to be considered for a TEACH Grant should begin the annual process by following these steps:

1. Complete the FAFSA each year
2. Complete TEACH Grant Initial and Subsequent Entrance Counseling
3. Complete the Agreement to Serve (ATS)

More information on the TEACH Grant can be found on Federal Student Aid's website.

If you receive a TEACH Grant but do not complete the required teaching service, you will be required to repay the grants as a Federal Direct Unsubsidized Loan, with interest charged from the date of each TEACH Grant disbursement. Therefore, while students intending to teach can benefit from this grant money, accepting the TEACH Grant is unlike any other federal grant program and should be done only after much thought and planning.

If your grant is converted to a loan, due to the reasons below, you will be provided with TEACH Grant conversion counseling by the U.S. Department of Education:

• You didn’t begin or maintain qualifying teaching service within a timeframe that would allow you to complete the service obligation within the maximum eight-year period, or
• You asked the U.S. Department of Education, Federal Student Aid to convert your grant to a loan