This article provides some very useful information on the federal tax benits of having a child in college.
IRS Publication 970 outlines several ways taxpayers may save on their education, including:
*Scholarships, Fellowships, Grants and Tuition Reductions *Hope Credit *Lifetime Learning Credit *Deduction for Higher Education Expenses *Student Loan Interest Deduction *IRA Withdrawals/401k Withdrawals *Employer Provided Assistance Benefits