Don't forget that you can deduct education expenses if you are a US citizen/resident. Check out pub 970 at http://www.irs.gov/pub/irs-pdf/p970.pdf (the 2008 verson is not yet available). If you pay for next years education this year, (what I plan to do) then you can get a tax credit of up to $2,000 this year (subject to various qualifications). In my case this tax credit also reduces my CA state income taxe.