« on: March 20, 2006, 09:14:40 PM »
Great question. You cannot use pre-tax dollars, persay. All I know is that there are educational savings accounts that you can setup -- the federal government offers tax advantages and there are state tax advantages as well (varies state by state). I am not sure if these are tax deffered or what, but earnings grow tax-free and withdrawals are free when used for qualified educational expenses. Of course, this would most likely apply if you've saved before attending school. Also, you are able to write-off the interest on your personal income taxes (I do not recall the limit), which helps.