Count pennies.

No matter how early or late you start saving, there's a plan that will help you get the most out of your money for college. Most families pay for college using a combination of savings, current income and financial aid. The more you save, the less you'll have to rely on money you need for day-to-day living right now. You'll also be responsible for less debt in the future because you'll borrow less. There are important savings plans you need to know about that offer special benefits for college-bound students and their families, including tax credits and exemptions.

Check out some of the most popular programs and credits below, and see how saving for college just makes sense.

• Future Scholar 529 Saving Plan
  

• Hope Scholarship Credit (HSC)
  

• Lifetime Learning Credit (LLC)
  

• Education IRA's
  

• Interest Deductions
  

Future Scholar 529 Saving Plan (College Savings Plans / Prepaid Tuition Plans)
a state-operated investment plan that gives families a federal tax-free way to save money for college

College Savings Plans let parents use their plan funds for college expenses at any college, while Prepaid Tuition Plans let parents lock in future tuition at in-state public colleges at present prices.

FINE PRINT

Earnings are exempt from federal taxes, as are any withdrawals, as long as they go toward paying for college costs.

The maximum contribution limits are particularly high with 529s, with some as high as $305,000 per student.

If funds are withdrawn for purposes other than education, the earnings are subject to a 10% penalty as well as federal income tax.

529 contributions are considered completed gifts and are excluded from your estate. Grandparents can also switch beneficiaries to other grandchildren.

If you file a resident or non-resident South Carolina tax return, you may be eligible for additional tax advantages. You may be eligible to deduct your Future Scholar contributions from your South Carolina state income tax return, up to the maximum account balance limit or any lower limit under applicable law. Earnings grow exempt from South Carolina state income taxes.

For more information, go to www.futurescholar.com

Hope Scholarship Credit (HSC)

The HSC tax credit is worth up to $1,500 per year for each student. There is a 100% tax credit for the first $1,000 paid for qualified expenses, and a 50% tax credit for the second $1,000.

FINE PRINT

You may claim HSC for two years. You must be in your first or second year and enrolled at least half time for one period of the tax year. You qualify by paying tuition and fees for yourself (if independent), your spouse, or a dependent child.

Your student activity fees, athletic fees and other expenses do not count toward your credit. Any grants and scholarships you have will reduce the tuition and fees used to determine your credit. Eligibility also decreases for modified adjusted gross incomes (AGIs) between $40,000 - $50,000 (filing single) and $80,000 - $100,000 (married, filing jointly).

Lifetime Learning Credit (LLC)

The LLC can save you up to $1,000 per year in federal taxes. There is a 20% tax credit for the first $5,000 paid for qualified expenses. After 2002, a 20% tax credit on the first $10,000 paid. There is no limit on number of tax years you may claim LLC.

FINE PRINT

The LLC is available to college juniors, seniors, graduate and professional students, as well as to students taking individual classes to improve job skills. You qualify by paying tuition and fees for yourself (if independent), your spouse, or your dependent child. Your student activity fees, athletic fees and other expenses do not count toward your credit. Any grants and scholarships you have will reduce the tuition and fees used to determine your credit. Eligibility also decreases for modified adjusted gross incomes between $40,000 - $50,000 (filing single) and $80,000 - $100,000 (married, filing jointly).

Education IRAs

Parents, grandparents and other family members can deposit up to $500 per year into an IRA for a child under age 18. There are certain income limits above which contributions can't be made. These education IRAs grow tax-free.

Interest Deductions

You can deduct interest on loans borrowed to meet college expenses when you file your tax returns. These deductions are for interest payments made during the first 60 months (5 years) in which interest payments are required.