Policies - 12.0 - 12.7

12.0 Tuition, Fees, Financial Aid, and Debt

Purpose
It is the policy of the School of Health Professions that students must pay all tuition and fees at the time of registration or take an installment payment and sign a promissory note for the installments. Students who have not made payments will not be allowed to attend classes, with the exception of students whose tuition and fees are paid by scholarships from private organizations, governmental agencies, or foreign governments.

Delays in the School of Health Professions receiving monies from sponsors will not constitute an acceptable reason for non-payment. Extended delays (more than 90 days) in collection of receivables from sponsors will require the student to make the uncollected payment. Student payments will be refunded upon receipt of cash or collected funds from the sponsor.

The following actions maybe taken against the student in the event of nonpayment of tuition and fees:

The student may be barred from classes until full payment is made
The student who fails to make payment prior to the end of the term may not receive credit for the work done that term
The student may be barred from re-admission until full payment is made
The student's grades, official transcript, and certifications of enrollment maybe withheld
Any degree to which the student would normally be entitled may be withheld
Other collection activities may be pursued as required

Reference: UT-Houston Health Professions Center Student Policies

12.1 Financial Aid

The Financial Aid policy is published in the Health Professions Student Catalog.

12.2 Tuition and Refunds

Purpose
All policies regarding the payment or refund of tuition, fees and charges are approved by the Board of Regents of The University of Texas System and comply with applicable state statutes. If a person desires clarification of any matter relating to payment or refund of such charges, he or she should contact the Registrar's Office.

Policy Statement
All required tuition, fees, and deposits are due in full or according to the scheduled installment plan as a condition of enrollment.

12.3 Installment Plan

Please see the Installment Plan section of the Tuition and Fees policy, which is published in the Health Professions Student Catalog.

12.4 Student Financial Responsibility

Please see the Student Financial Responsibility section of the Tuition and Fees policy, which is published in the Health Professions Student Catalog.

12.5 Tuition

Please see the Tuition section of the Tuition and Fees policy, which is published in the Health Professions Student Catalog.

12.6 Student Debt

Purpose
The purpose of this policy is to inform the students of their responsibility for personal debt.

Policy Statement
The University of Texas M. D. Anderson Cancer Center is not responsible for debts contracted by individual students or student organizations and will not be involved in collection efforts or in arbitrating disputes between students and creditors. Both individual students and organizations are expected to discharge contractual obligations.

12.7 Tax Information for Students

Introduced as part of the Taxpayer Relief Act of 1997, the Lifetime Learning Credit can be used for education at both undergraduate and graduate levels, as well as to acquire or improve job skills. At a time when people are changing jobs and careers at an ever-increasing rate, the Lifetime Learning Credit offers people assistance throughout all these periods of transition and growth. By helping to reduce the costs of education, the credit should encourage more people to pursue graduate programs and other forms of pre- and post- baccalaureate career training.

How will the Lifetime Learning Credit affect current and prospective students?
Beginning July 1, 1998, taxpayers can claim up to 20 percent of their first $5,000 of qualified tuition and related expenses per year (up to $1,000). After the year 2002, the credit amount increases to 20 percent of the first $10,000, to a maximum of $2,000. Unlike a tax deduction, the amount of the credit does not reduce taxable income, but is deducted directly from the taxpayer's actual tax liability.

What are the eligibility requirements?
If a student answers "yes" to these questions, he/she is likely to be eligible for the Lifetime Learning Credit:

Are you a U.S. citizen or resident alien? (There is an exception that may apply for nonresident aliens who are married to US citizens or resident aliens.)
Is your modified adjusted gross income $50,000 or less (individual) or $100,000 or less (married taxpayers filing jointly)?
Is your institution deemed an eligible institution? (See definition below.)
Do you have qualified tuition and related expenses? (See definition below.)
Are payments for qualified tuition and related expenses made on or after July 1, 1998, for an academic period beginning on or after July 1, 1998?
Do your payment methods entitle you to the credit? (See definition below.)

What is an eligible institution?
Any college, university, vocational school, or other post-secondary educational institution that is eligible to participate in the student aid programs administered by the Department of Education is considered an eligible institution. This includes virtually all accredited public, non-profit, and proprietary post-secondary institutions.

What are qualified tuition and related expenses?
Qualified tuition and related expenses include fees that are required in order to be enrolled at an eligible institution. This does not include charges and fees associated with room, board, student activities, athletics, insurance, books, equipment, transportation, and similar personal, living, or family expenses. Amounts paid for any course or other education involving sports, games, or hobbies are not eligible for the credit, unless the course or other education is part of the student's degree program.

What are the payment methods that can be used to be eligible for the credit?
Payments can be used in calculating the credit if they are "out-of-pocket" expenses, including payments made from a student's earnings, a loan, a gift, an inheritance, or personal savings. However, the following payment methods are not included in the credit calculation: payments made with Pell Grants, tax-free scholarships, a tax-free distribution from an IRA, and tax-free employer-provided educational assistance.

How much can be claimed for the Lifetime Learning Credit?
Through the year 2002, a credit can be claimed for 20% of the first $5,000 of out-of-pocket expenses for a family's qualified tuition and related expenses (a maximum tax credit of $1,000 for the entire family). After the year 2002, the maximum allowed increases to $2,000 for the family, based on 20% of the first $10,000 of out-of-pocket expenses. Credits can be claimed for more than one person in the family, but may not exceed the maximum tax credit.

How does a student actually get the credit?
The student determines the amount owed in federal income taxes and directly subtracts the amount of Lifetime Learning Credit from this amount. If the credit exceeds the amount of taxes owed, the difference is not refunded. For example, if a student owes $500 in federal income taxes and is eligible for a $1,000 tax credit, only $500 can be claimed against the taxes.

Does a student have to be in a degree program?
No. A student enrolled in a single non-degree course can claim the credit. The Lifetime Learning Credit applies to graduate and undergraduate classes, as well as continuing education.

Is there a limit on how often the credit can be claimed?
No. A Lifetime Learning Credit can be claimed every year.

Still have questions about the tax credit?
More detailed information on the Lifetime Learning Credit and other educational funding initiatives can be found on the following web sites:

NOTE: Pages will open in a new browser window.