When it comes to the Tax Cuts and Jobs Act of 2017 (TCJA), there’s a lot to digest, especially if you have a child in college or going to college in the near future. While there was talk of eliminating many current provisions for education at the outset of negotiations surrounding this tax bill, the final bill has several benefits for families when it comes to higher education.

This is only a general overview of a few of the tax changes that could impact your family and not an attempt to provide tax advice. You should speak with a tax professional who’s well versed in your family’s finances to get a detailed sense of how the new tax bill could affect you and any steps you can take to better prepare your family financially to pay for college.

Here are the top five things you need to know.

1. Student Loan Interest Deduction

This deduction was slated to be repealed, but it was removed from the final bill, which is good news for students and parents. There are no changes to this deduction. If you qualify, you can deduct up to $2,500 in qualified interest per year.

2. Alimony Tax Change

Beginning with divorce agreements executed after 2018, alimony will no longer be taxable income to the recipient and will no longer be a deduction to the payer. This means that alimony will be taxed at the rate of the paying spouse rather than the receiving spouse. This may affect how some families qualify for financial aid using the Free Application for Federal Student Aid (FAFSA®). As with all tax and financial aid situations, it warrants careful consideration to understand the impact to each family.

3. Home Equity Loan Interest Deduction Elimination

For some families, using a home equity loan has been an option for paying for college because home equity loans typically have lower interest rates than federal student loans. The new tax bill has suspended the interest deduction for families borrowing for college by a home equity loan. “Parents will need to re-examine if a home equity loan makes sense on a case-by-case basis,” says Joseph Orsolini, former chapter president of the Independent Accountants Association of Illinois and cofounder of College Aid Planners.

4. Fewer Restrictions on 529 Plans

Prior to the new tax bill, money saved in a 529 plan could only be used to pay for tuition to colleges and universities. Now, the new law allows parents to use up to $10,000 of 529 plan funds per child per year for elementary and secondary school tuition, which may offset enrollment fees for families who opt to send their children to private school. Of course, if parents use the money earlier in a child’s education, it could affect how much savings is left to pay for college. Long-term financial planning will become even more important to help parents feel financially prepared if they are helping their children cover college tuition.

5. New Taxes on College Endowments

Some colleges and universities are now subject to an excise tax on their endowments at a rate of 1.4 percent of net investment income where the endowment assets are more than $500,000 per student and the educational institution satisfies other designating criteria. While it’s still unclear how this ruling will trickle down to students, the excise taxes may result in less aid money for students as impacted schools look to offset the new cost. You may need to get creative when it comes to paying for your child’s higher education and look to places outside of your child’s college for scholarships and aid.

FAFSA® is a registered service mark of the U.S. Department of Education.