The start of school is here again. If going back to school takes the path to college, hopefully you don't choke on the increasing cost of college tuition, books, supplies, room and board.

According to Certified College Financial Planner Calvin Williams of Lead Me To College, the cost of attendance at a public in state school like the University of Colorado, Colorado State, or Fort Lewis College, will run you about $15,000 per year on average. The cost of attendance jumps for private schools, running about $30,000 per year. If you are lucky and smart enough to get into an "elite" school, like Harvard or Stanford, the cost will run you about $45,000 per year.

If my math is correct, and for my clients sake I sure hope it is, the cost of attendance, including tuition, books, fees, room and board, transportation, and spending money, before financial aid, could run about $60,000 for a public college education on the low end. On the high end, you could be talking about $180,000 for a bachelor's degree. If the student takes over four years to finish that bachelor's degree, it may be time to start buying Powerball lottery tickets, or to get therapy to cut the apron strings and not support your now adult child all the way to the college finish line.

If you are fighting the fight and helping your child pay for college, here are a few tips to save you some money this fall and beyond.

First, help your child pick the right school and encourage them to get to work. Many students now take over four years to finish a bachelor's degree sometimes because they transfer schools and loose credits. Other times, a student may not have a solid goal and they end up taking some great classes that don't help them progress towards a degree. By helping your student research and select the right school with the right program and then encouraging them to get to work you help them to get finished on time. Avoiding the extra year or two can save a ton of money out of pocket. Finishing on time also avoids lost income the child could have earned if they had finished in four years.

Second, take advantage of available tuition tax credits. The IRS provides two popular education credits. Under the Hope credit, you can get a tax credit of up to $1,650 for 2007 per student for the first two years of college. The credit is equal to 100 percent of tuition up to $1,100 and 50 percent of the second $1,100 of tuition. After the first two years, the Lifetime learning credit provides a tax credit equal to $2,000 per family for every additional year of college or graduate school. This credit is equal to 20 percent of tuition up to $10,000 for 2007. Unfortunately, both credits are completely unavailable if you are married and have income over $110,000 or $55,000 if you are single. If you earn over this amount, you may consider taking steps so your child fails to meet the dependency exemption, and can utilize the credits themselves.

Third, don't miss the deduction of up to $4,000 of higher education expenses if you qualify. This may include costs you paid for your dependent child to go to college. This deduction will be limited if you are married and earn over $130,000 per year, and will not be available at all if your income is over $160,000. This deduction is also scheduled to expire at the end of 2007. So this may be the last year it is available to you. Finally, you cannot claim the deduction and claim either the Hope or Lifetime learning tax credit.

Fourth, don't miss the deduction for interest paid on a student loan used to pay your child's college education. The tax law allows you a deduction for the interest you pay on loans used to pay for post-secondary education, including some vocational and graduate schools up to a maximum of $2,500 per year. This deduction is not available if you are married and have income over $140,000 per year or $70,000 if you are single. An excellent part of this deduction is that it is available even if you do not itemize.

Fifth, if you are a business owner, put your child on the payroll and let them pay for their own schooling as much as possible. I recently wrote a column outlining significant tax benefits from putting your child on the payroll. The general idea is that instead of you earning income and paying taxes at your higher rate, then using your after tax dollars to pay for education expenses, you put the child to work for your company and pay them a wage. The wages they earn are generally taxed at a much lower bracket then yours and may even be income tax free up to the standard deduction amount. The child then pays much of their college costs and gains extremely valuable real world experience working. This strategy alone could literally save you thousands every year.

Sixth, take advantage of every scholarship you can. This may seem obvious, but not everyone does it. Scholarships are basically free money. They are available for many reasons, circumstances, programs, and schools. Spend the time researching, applying, and going after them. It's worth it - enough said.

Lastly, you may consider borrowing against home equity. I am not a huge fan of this one, but I recognize that in the right situations, it may be appropriate. Using a home equity loan rather than a more traditional student loan may allow you to write off a greater amount of the interest on the debt and may be a good idea for you if your income is too high to qualify for the student loan interest deduction.

College is crazy expensive, but the government has used the tax code to encourage your child to go. There are many tax strategies and other ideas that can help you save and help your kids pay for college. This is intended for general interest and not as specific legal or accounting advice for anyone. You should consult your tax advisor to get more information.

Scott Jensen, CPA is a public accountant practicing with Bailey Saetveit & Co, P.C. in Greenwood Village and resides with his family in Parker. He can be reached at sjensen@baileysaetveit.com or 303-799-4100 with comments or questions.