This is an update on the Hope and Lifetime Learning Tax Credits that many
UTC students (or their parents) will be benefiting from this tax season.
This should also be of interest to anyone at the University that paid
college tuition and fees for themselves or for a child during the 1998 year.

UTK mailed 1098 forms to all UT students (UTK, UTC, UT-Martin, UT-Memphis)
that took courses in 1998. These forms tell students that they MAY be
eligible (or their parents) to take a tax credit on their 1998 tax returns.
They are also given a phone number that they can call here at UTC,
321-FREE(3733) to receive more information. This phone line is housed in
the Bursar's Office, and staff that are answering this line are being
trained to get students the information they need for purposes of the tax
credit.

Students will be able to receive copies of the tuition and fees that they
paid during the 1998 calendar year, as well as a summary of the financial
aid they received during 1998. These are documents that students receive
during the year as they pay fees and receive financial aid offers, but we
believe many students  may not have quick access to these records that they
or their parents will need to figure their eligibility for the tax credit.
Students that call this line will be asked to pick up these forms after 2
p.m. the following day. Students no longer attending UTC and not living in
the Chattanooga area can request that the documents be mailed to them. We
are hoping that having one central phone number from which students can
request information will lessen the burden on students in collecting this
information, and let them get the information they need by making one call
and stopping by one office.

Other individuals who are already in repayment on their student loans will
be mailed information from their lender on the amount of interest they paid
during the 1998 year. Under certain conditions, this interest is now tax
deductible.

I want to remind the UTC community that no individual in either the
Bursar's or Financial Aid Office is authorized to give students tax advice.
The best service that we can give our students is to give them the
information that they need in order for them (or their tax preparer) to
calculate their eligibility for the tax credit. We will certainly be
directing students to check with their tax advisor, the IRS
(1-800-829-1040), or appropriate web pages for more detailed information.

Listed below are two excellent web sites for more information. The first
web site gives an excellent summary on the Hope and Lifetime Learning tax
credits:

http://www.nasfaa.org/static/general/public/GrevHopeCC111698.html

The second web pages gives more detailed information on the entire Tax
Relief Act of 1997:

http://www.ed.gov/inits/hope/index.html

Thanks for reading.

Sincerely,


Jonathan Looney
Acting Director - Student Financial Aid
University of Tennessee at Chattanooga