credit in education

Created by the Great Schools Partnership , the GLOSSARY OF EDUCATION REFORM is a comprehensive online resource that describes widely used school-improvement terms, concepts, and strategies for journalists, parents, and community members. | Learn more »

Credits are one of the primary methods used to determine and document that students have met academic requirements, generally at the high school level. Credits are awarded upon completing and passing a course or required school program. In the United States, credits are often based on the Carnegie unit , or 120 hours of instructional time (one hour of instruction a day, five days a week, for 24 weeks). However, the actual duration of credit-bearing courses may differ significantly from the Carnegie-unit standard.

Most public high schools require students to accumulate credits to earn a diploma. While schools and districts determine credit requirements, states require schools to have minimum credit requirements in place. For example, a state might require students to earn a minimum of 18 credits to be eligible for a high school diploma, but a school may choose to increase credit requirements to 24 credits or higher. While credit requirements vary from state to state and school to school, they generally outline minimum requirements in the following subject areas: English language arts, mathematics, social studies, science, health, physical education, technology, and world languages. Schools also typically require students to earn a certain number of “elective” credits as well, and elective courses can span a wide variety of subject areas, including those listed above. For a related discussion, see core course of study .

In recent years, the traditional course credit has become the object of reform, particularly as an extension of proficiency-based learning or of efforts to change assessment strategies, grading practices, graduation requirements, and core courses of study in schools. Some states have sought to raise educational expectations, increase instructional time in certain subject areas, and improve student preparation by raising minimum credit requirements. For example, state regulations may require public high school students to complete four “years” of English and math—the equivalent of four credits in each subject—but only two or three years of science and social studies. As a way to promote stronger student preparation in science and social studies, states may decide to increase credit requirements. Other subject areas, such as technology, health, or world language, for example, have also been subject to increases in minimum credit requirements. Districts and schools may also elect to increase credit requirements independently, and some education organizations have recommended stronger credit requirements as a strategy for promoting higher academic achievement and more prepared graduates. In effect, increasing credit requirements in a given subject area increases the amount of time students will be taught, which increases the likelihood that they will be better educated in that subject area.

Critics of course credit may argue, however, that credit-based systems allow students to pass courses, earn credits, and get promoted from one grade level to the next even though they may have not acquired essential knowledge and skills, or they may not be adequately prepared for the next grade or for higher-level courses. The credit is often cited as one of the reasons why some students can earn a high school diploma, for example, and yet still struggle with basic reading, writing, and math skills.

A term commonly associated with credit-related reforms is “seat time”—a reference to the 120-hour Carnegie unit upon which most course credits are based. The basic idea is that credits more accurately measure the amount of time students have been taught, rather than what they have actually learned or failed to learn. For example, one student may earn an A in a course, while another student earns a D, and yet both may earn credit for passing the course. Given that the two grades likely represent significantly different levels of learning acquisition, what does the credit actually represent? In addition, if the awarding of credit is not based on some form of consistently applied learning standards —expectations for what students should know and be able to do at a particular stage of their education—then it becomes difficult to determine what students have learned or failed to learn, further undermining the credit as a reliable measurement for learning acquisition and academic accomplishment.

Some educators and education reformers argue that strategies such as learning standards, proficiency-based learning, and demonstrations of learning , among others, provide more valid and reliable ways to determine what students have learned, whether they should be promoted to the next grade level, and whether they should receive a diploma.

Credits are a familiar, understandable concept and their use is so widespread that people have become accustomed to them, which may contribute to debates about course-credit reforms, given that some may question why something so universally used needs to be changed. That said, credits are more likely to be the indirect object of debates about related issues, such as learning standards, grading practices, or proficiency-based learning.

Some advocates might argue, for example, that credits are a simple, widely used way for schools to ensure that students receive a certain amount of instructional time in important subject areas. They may also point out that minimum credit requirements imposed by states have been effective in raising educational expectations and improving student preparation in critical subject areas.

Critics of credit-based systems will likely echo the points made above, questioning whether credits should be used at all given that they are an imprecise way to measure learning acquisition and academic accomplishment. Credits, they may contend, provide a false sense of security: while having earned credit make it appear that students are learning—i.e., they have passed courses—credits may in fact be misleading and misrepresentative, since students are often able to earn credit even though they have failed to learn what the course was intended to teach. To detractors, schools should instead be measuring what students have learned or not learned—using time-based requirements such as credits, rather than learning-acquisition requirements such as learning standards, will simply allow students to continue passing courses, moving onto the next grade level, and graduating even though they may lack important knowledge and skills.

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What is a course credit system and how are credits earned, transferred? A beginner’s guide

Credit System: What is a college or course credit system and how does it work in school, technical courses and other programmes?

R. Radhika | August 22, 2022 | 10:55 AM IST

NEW DELHI: Bringing the entire education system, from school to PhD, under one uniform credit system is one of the biggest reforms the ministry of education has planned under the National Education Policy, or NEP 2020.

Redefining education based on learning outcomes; the ministry has mapped a cumulative credit system that will begin as early as Class 5. The centre is currently deliberating on the finer details. While the centre has plans to roll out the credit system for school education system in August in a phased manner, it has already been introduced in higher education institutions by the University Grants Commission (UGC) and the All India Council for Technical Education (AICTE).

The National Higher Education Qualifications Framework (NHEQF), a credit system starting from Class 10 to college and university, was designed by the Department of School Education, the Department of Higher Education and the Department of Skill Development. This framework divides education into eight levels, beginning with four school, and four higher education levels. In higher education, it covers all undergraduate degrees (BA, BSc, BCom, BTech and others) postgraduate degrees (MA, MSc and more), all the way to PhD.

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The “unified credit system” is intended to improve credit transfer from school to higher education level. This will also allow students to earn credits through online programmes and facilitate blended, open and distance learning.

What is a credit system?

A credit system is a systematic way of describing an educational programme by attaching credits to its components. Essentially, a credit is a unit by which course work is measured. The workload relating to a course – how much you have to study – is measured in “credit hours”. Different types of courses or course activities will claim different durations of time or “credit hours” and are stipulated in advance. Students must complete those numbers of hours and earn the credits they fetch. For example, a student may need to complete 28 hours in the lab to earn 14 credits in a system where two hours of practicals fetch one credit.

In theory, the system allows a continuous evaluation of a student’s progress with a degree of flexibility . Under this system, the programme requirements are met only when a student has actually completed the required number and type of courses to accumulate credits.

Credit is awarded to a learner in recognition of the “verified achievement” of the defined learning outcomes. Learning outcome means the level of knowledge that students are expected to gain after completing a certain course component. This may also include skills acquired to become employable.

The learning outcome can be determined across multiple modes such as lectures, lab work, assignments, self-study, e-learning, projects undertaken and internships.

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How are credit hours calculated?

The contact hours or the total time a student spends on different components of the programme fetch credits accordingly. For example, the total learner engaged time for a one credit taught course would be 45 hours. The out-of-class activities may not be measured and quantified for purposes of grading of the credit. These activities include preparation for classes, completing assignments that form a part of the course work, and independent reading and study.

The credit hours are calculated on the basis of submissions such as reports in courses requiring students to participate in field-based projects, generally outside educational institutions. A total of 15 hours per credit will be calculated for activities such as preparation for community engagement and service, preparation of reports, independent reading and study etc.

For every programme, the student is required to earn satisfactory credit scores for progression to the next stage and also a continuation in the programme. At the end of the programme, the credits are calculated to award a cumulative grading point average or CGPA.

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Beyond this, a student can also accumulate course credits outside a programme. For instance, a BA History student can take a certificate course on data analytics at another institution. The credits will be awarded only when the student satisfactorily spends credit hours stipulated for this certificate course. These credits, however, will not be added to the final CGPA of the main programme (history) but stored as credits earned in the Academic Banks of Credit (ABC).

How does the credit system work?

AT SCHOOL-LEVEL: The ministry of education has planned to roll out a “ National Credit Framework ” that brings school education under a unified credit system. This begins at Class 5 where a student must complete 800 to 1,000 hours per year to reach credit level-1 and study for the same duration in Class 8 to reach level-2.

In secondary school, the credit level will rise by 0.5 for every year of learning, the draft states. Similarly, in Class 10, the student will be at level three and in level four in Class 12.

The hours spent include not just academic teaching and learning but also extracurricular activities like sports, yoga and music for assessment. At the end of the year, the students are awarded grade point average or a GPA based on the credits earned.

IN TECHNICAL EDUCATION : In higher education and vocational education, the credit system proposes 1,200 “notional learning hours” for earning 40 credits in a year. Each semester, a student will earn 20 credits. In the proposed college credit system, one credit is equivalent to 30 hours spent on course work. It gives equal weightage to lectures attended, tutorials, assignments and out-of-class activities such as practical or fieldwork or community engagement and service.

Meanwhile, the technical education regulator – AICTE – has implemented a credit framework from 2022-23 academic session that allows mobility from professional and vocational education to engineering. This framework starts at Class 10, at level three. At each level, assessment – a test or exam – is mandatory for earning credits and moving to the next assessment band and further progression in the academic, vocational or skilling streams. In Class 12, the student will be at level 4 of the credit system.

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For entry into level 5, the eligibility is a school leaving certificate after the completion of Class 12 with four credits. The credit level will rise by 0.5 for every year of learning. At the end of the first year of BTech, a student will receive 4.5 credits, 5 credits after second year, 5.5 in third year. A student will get six credits after completing a four-year BE or BTech programme and seven after the two-year ME or M/Tech. Students will get eight credits after a PhD degree. So, the credit level progression will be 4.5, 5, 5.5, 6, 6.5, 7, 7.5 and 8 between first year of BTech up to PhD in the field of engineering and technology.

In addition, the AICTE has directed institutions to identify the educational gaps or skill gaps and thereafter, offer suitable bridge courses for students at each entry level. “To make the students employable after every exit, the skill component with progressive enhancement in skill in respective disciplines could be introduced in the curriculum from the first year of the programme,” an official statement said.

IN OTHER PROGRAMMES: On the other hand, the UGC’s credit framework for the four-year undergraduate progammes proposes that students will have to earn 20 to 22 credits in each semester, a total of 160 credits; with one credit for 15 hours of classroom teaching. Every semester consists of 90 working days – about three months – with 40 hours of instructional time in a week.

For instance, at Delhi University, the UG framework has 22 credits every semester leading to a total of 176 credits at the end of a four-year programme with a research component.

This will consist of 48 credit hours of either a single discipline or interdisciplinary subject chosen by the student. In addition, field-based projects, a part of the undergraduate curriculum , will carry four credit hours. Research-based courses and internships will be allotted 18 credits.

Under the four-year programme, students will also have the liberty to choose two “minor” courses in order to expand their area of knowledge through interdisciplinary subjects. The minor course consists of 32 credit hours, 16 credits for each minor.

Colleges and universities across India are in the process of modifying the curriculum to implement the UGC prescribed 4-year undergraduate programme structure.

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What happens to credits if a student drops out?

All credits earned by a student will be stored in an ABC. Once this account is opened, all educational institutions will be responsible for keeping a record of academic credits each by the student and deposited in the ABC.

The centre has also planned to expand the scope of ABC to include the management of credits at the school level. The ABC will be linked to the Digilocker for verification and portability of credits.

In case a student decides to exit the programme, the ABC will store earned credits that can be redeemed for re-joining the same or an allied course within seven years.

Once a student completes the first year of college with 40 credits, they are awarded a certificate. If the student continues to the second year and completes it with 80 credits, a diploma is awarded. Similar to the first year, a student can exit at this stage with a diploma and can rejoin within seven years after redeeming the credits. Once a student completes the third year of a UG degree programme, they will be awarded a bachelor’s degree. For this, 120 credits are required.

When it comes to the postgraduate level, a student can exit after one year, with a one-year diploma. Completion of the full two-year programme will lead to a master’s degree.

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How Many Credits Do You Need to Graduate College?

Typically, a bachelor's degree requires 120 college credits—but it's not always that simple. Here's how to parse through credit requirements.

The total number of credit hours you need to graduate college will depend on the degree you are seeking and the specific university you attend. Generally, a bachelor’s degree will require a minimum of 120 credits , an associate degree will require at least 60 credits , and a master’s degree will require anywhere from 30 to 60 credits .

Typically, a school’s accreditation body will determine minimum credit requirements for a degree program. However, individual universities may decide to raise their total credit requirements for some or all degree programs.

Additionally, schools will likely have further requirements regarding credit hours, including a number of credits earned through the core curriculum, a number of credits earned through a declared major curriculum, and a number of credits earned “in residence,” or earned at your school as opposed to transferring credits from other universities.

What is a college credit hour?

A college credit hour is an estimation of time spent on coursework for a class. One credit hour equates to one hour of instruction per week, plus an expectation of two hours of work outside of class. Many undergraduate college courses are typically three or four credit hours. Credit hours are used both in determining your GPA (along with your final grade) and in determining eligibility for federal financial aid.

The total number of credit hours you take per semester will determine your status as a full-time or part-time student. Generally, taking less than 12 credit hours per semester—typically, less than four classes—qualifies as part-time status, while full-time students will take at least 12 credits—four or more classes—per semester.

How many credits is a bachelor’s degree?

Most bachelor’s degree programs require 120 college credits. At a four-year institution granting an average of three credits per class, that’s five classes per semester.

Many institutions require more than 120 credit hours to graduate, with some programs exceeding 140 total credit hours. This difference may be based on the individual degree program. For example, education programs and engineering programs may require additional credits, or it may be due to the way universities assign credits to their courses.

Learn more: How to Get a Bachelor's Degree

Core credit requirements

Beyond the total number of credits earned, a bachelor’s degree will likely require a certain number of credits earned in specific areas: core courses—or the general education courses required of all students—and major courses specific to your desired area of study.

Each university can set its own core curriculum credit requirements , so the total number of core credits required will vary. You can anticipate fulfilling up to half of your required credits on the core curriculum. (Some states have laws governing the inclusion of specific coursework, and others don’t.) Often, core curriculum will include courses on:

Foreign language

Arts and humanities

Social sciences

Because the core curriculum is required of all students, some institutions expect students to complete these requirements in the first two years, sometimes before declaring a major. This approach helps keep students on track to graduate within the targeted four years and allows them to explore a range of study topics before committing to one major.

Major credit requirements

Once you do decide upon a major —often declared during the second year of college—you’ll be able to start working toward your major credit requirements . Requirements vary by school and by department. However, many major requirements will fulfill between one third and one half of your total required credit hours.

Learn more: What Should I Major In? How to Pick Your College Major

Elective requirements

Beyond core and major curricula, you can fulfill the rest of your credit requirements by taking elective courses —or courses outside of your core and major requirements that sound interesting to you—or by picking up a double major or minor. A double major means you fulfill all of the major requirements for two majors, while a minor means you’ve completed a shorter series of coursework in a given subject area.

Tip: How to figure out how many credits you need to graduate

For a complete breakdown of your school’s credit requirements, search “graduation requirements” or “degree requirements” on your university’s website. Beyond core and major credits, you may find requirements such as a minimum grade point average (GPA) or time limitations.

Once you have decided on your major, you can likely locate your major requirements by searching “major requirements” on your department’s website. If you are planning to major in psychology, for example, go to the psychology department’s website and search “major requirements.” There, you should see a list of core and elective courses and credit requirements specific to your major.

How many credits is an associate degree?

Associate degree programs commonly require 60 credits—half of the credits required of a bachelor’s degree program—however, some associate degree programs require over 80 credits. Generally, it takes about two years to earn an associate degree on a full-time schedule.

This wide range of total credit requirements is primarily attributed to the intention of the program. Liberal arts associate degrees tend to require closer to 60 credit hours. These programs are often used as a vehicle to transfer into a bachelor’s degree program and aim to fulfill many of the general education requirements. 

However, vocational associate degree programs tend to require a higher number of credit hours as they are designed to lead toward a specific job with no further schooling, such as cosmetologist, dental hygienist, or veterinary assistant.

Learn more: 10 High-Paying Jobs You Can Get with an Associate Degree

How many credits is a master’s degree?

A master’s degree will generally require anywhere from 30 to 60 credits but can require even more depending on the specific master’s degree you seek. Along with this variation, master’s degree programs tend to take between one and two years to complete if you’re attending full-time.

Master’s degree programs often have additional graduation requirements beyond total credit hours. Many require successful completion of a thesis, capstone, or another culminating project.

To determine the total number of credit hours required for your master’s degree, search “graduation requirements” on your program’s website.

Learn more: Is a Master's Degree Worth It?

Can you transfer credits into a degree program?

If you've already earned college credits in the past, you may be able to transfer your credits into a degree program. Depending on the degree you're working toward, the specific courses you took, and your school's course requirements, you may be able to apply those credits to fulfill a portion of your core or elective credit requirements.

To determine whether your previously earned credits can fulfill a portion of your graduation requirements, start by searching for your school's transfer policies on their official website or contact your academic advisor.

Getting started with your college degree

Ready to start earning credits toward your degree? Check out the degree programs available on Coursera and learn at your own pace from anywhere, with course options from top universities.

If you’ve already earned some college credits, you may want to look into the Bachelor of Applied Arts & Sciences from the University of North Texas . You could enter the program with up to 90 transfer credit hours, saving time and money as you pursue your bachelor’s degree.

Frequently asked questions (FAQ)

How long does it take to get a bachelor’s degree while attending classes part-time ‎.

There is no set amount of time it will take to complete a bachelor’s degree while attending classes part-time. Generally, it will take more than four years to complete, and it’s good to note that some schools require that students complete their degree within a certain timeframe, such as eight years. You can usually find any time limits listed under a school’s graduation requirements. ( College credits generally don’t expire , so if you exceed the time limit or want to attend a new school after partially completing a degree program, you might be able to count your previously earned credits toward a new degree program.)

If you take courses year-round, including during summer and winter sessions, or enter your part-time program with previously earned credits or an associate degree, you may be able to earn your degree in less time . ‎

How do you graduate college in three years? ‎

In a program requiring 120 credits with each class averaging at three credit hours, you’d have to take roughly three extra classes per year to earn a bachelor’s degree in three years.

You may be able to manage those extra classes during the course of a regular semester, or you can consider taking classes during summer or winter sessions. Alternatively, you may be able to earn some credits through exams, such as AP or CLEP, or for professional experience. Your academic advisor should be able to tell you all available options and help you come up with a plan that will work for you. ‎

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What Is an Education Tax Credit?

• How It Works
• Requirements
• American Opportunity Tax Credit

Lifetime Learning Credit

• Deductions & Credits
• Tax Credits

Education Tax Credit: Meaning, Requirements

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Lea Uradu, J.D. is a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, and Tax Writer.

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

Education tax credits are available for taxpayers who pay qualified higher education expenses for an eligible student to an eligible educational institution, such as a college or university. The two types of education tax credits are the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).

Key Takeaways

• The American Opportunity Tax Credit (AOTC) is for eligible students who have not yet completed their first four years of higher education.
• The Lifetime Learning Credit can be used to offset costs related to undergraduate, graduate, or professional degrees.
• You cannot claim both the AOTC and the lifetime learning credit for the same student in the same tax year.

How Education Tax Credits Work

Education tax credits may be claimed by those who incur qualifying educational expenses, such as tuition and fees. Parents who pay these expenses for their children may be able to claim this type of credit on their tax returns , subject to certain income restrictions.

There are two types of education tax credits: the American Opportunity Tax Credit (AOTC) and the lifetime learning credit. The AOTC applies to the first four years of postsecondary education, with certain restrictions. The Lifetime Learning Credit applies to all students at the undergraduate, graduate, and professional levels. You cannot claim both the AOTC and the Lifetime Learning Credit for the same student in the same tax year.

Requirements for the Education Tax Credit

Both credits also have their own eligibility rules, but a taxpayer must meet all three of these requirements for both:

• You, your dependent, or a third party must pay  qualified higher education expenses .
• You, your spouse, or a dependent listed on your tax return qualify as an eligible student.
• The eligible student (above) must be enrolled at an eligible educational institution.

American Opportunity Tax Credit (AOTC)

The American Opportunity Tax Credit (AOTC) is for eligible students who have not yet completed their first four years of higher education. They must not have claimed the AOTC or former Hope credit for more than four tax years. The student must be enrolled at least half time for one academic period, as determined by the school, during the tax year. Additionally, they must not have a felony drug conviction as of the end of the tax year.

There are income limits for claiming the AOTC. The credit begins to phase out at a modified adjusted gross income (MAGI) of $80,000 for single filers and $160,000 for married taxpayers filing jointly for full credit. Single taxpayers with a MAGI of more than $90,000, or MFJs with a MAGI over $180,000, cannot claim the credit. Income in between these brackets allows for claiming a reduced credit.

Eligible students can claim 100% of the first $2,000 spent on school expenses and another 25% of the next $2,000. The maximum amount that an eligible student can claim is, therefore, $2,500: (100% × $2,000) + (25% × $2,000). In other words, the maximum $2,500 AOTC can offset $4,000 spent on qualified higher educational expenses.

The AOTC is a partially refundable tax credit. This means that if the credit reduces your tax burden to less than zero, then the Internal Revenue Service (IRS) will send you a check for up to 40% of the remaining credit. The maximum refundable portion of the credit is, therefore, $1,000 (40% × $2,500).

The Lifetime Learning Credit has broader eligibility requirements than the AOTC, as it is intended for taxpayers at all education levels. The Lifetime Learning Credit can be used for a wide range of schools, including vocational training or professional degree courses, as well as for tuition at more traditional four-year undergraduate and graduate schools.

To be eligible for the Lifetime Learning Credit, a student must be enrolled in a course to earn education credits or improve job skills at an eligible educational institution for at least one academic period, as determined by the school. The student will receive a Form 1098-T, Tuition Statement, from the educational institution if it is an eligible school as defined by the IRS.

After Dec. 31, 2020, the MAGI used by joint filers for the Lifetime Learning Credit is not adjusted for inflation. The credit is phased out for taxpayers with a MAGI between $80,000 and $90,000 for single filers and $160,000 and $180,000 for joint returns.

Eligible students can claim 20% of the first $10,000 of qualified education expenses. The maximum amount that an eligible student can claim is, therefore, $2,000 (20% × $10,000). The Lifetime Learning Credit is not refundable. This means that the credit can reduce your tax liability to zero, but it cannot be refunded to you beyond that point.

Criticisms of Education Tax Credits

Critics of subsidies for higher education have long argued that education tax credits are one reason that the cost of higher education has been rising many times faster than inflation . According to these critics, education tax credits simply raise the overall cost of college without an actual increase in access to it. Tax credits make more money available for spending on education, but they do nothing to increase the supply or quality of schooling. 

What Are the Major Differences Between the AOTC and the Lifetime Learning Credit?

The AOTC has a maximum of $2,500, and the Lifetime Learning Credit maximum is $2,000. Both credits cannot be claimed in the same tax year for the same student.

The AOTC can only be used for undergraduate expenses, while the Lifetime Learning Credit is more flexible. The AOTC can only be claimed for four tax years; the Lifetime Learning Credit can be claimed an unlimited number of times.

The AOTC requires the student to be enrolled at least half time for an academic period, while the Lifetime Learning Credit is available to students enrolled in at least one course for an academic period.

Students cannot have a felony drug conviction and claim the AOTC. This is not a requirement for the Lifetime Learning Credit.

Is My Vocational School an Eligible Educational Institution for the Lifetime Learning Credit?

Yes, your vocational school may count as an eligible educational institution for the Lifetime Learning Credit. If your school is eligible, you will receive a Form 1098-T from your school in the mail before you file your taxes.

What If I Don’t Receive a Form 1098-T From My School?

If you do not receive a Form 1098-T, contact your school. Similarly, if you believe that the amount listed on your 1098-T is incorrect, contact your school.

Internal Revenue Service. “ Education Credits—AOTC and LLC .” 

Internal Revenue Service. “ American Opportunity Tax Credit .”

Internal Revenue Service. “ Lifetime Learning Credit .”

Internal Revenue Service. “ Education Benefits — No Double Benefits Allowed .”

Internal Revenue Service. “ What Is an Eligible Educational Institution? ”

Internal Revenue Service. " IRS Provides Tax Inflation Adjustments for Tax Year 2023 ."

Internal Revenue Service. “ Compare Education Credits .”

Internal Revenue Service. " About Form 1098-T, Tuition Statement ."

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