November 12, 2008
Federal student loans – tax deductable?
Yes! In many cases you can deduct the interest you pay from your taxes.
The IRS publication 970, Tax Benefits for Higher Education explains these benefits in greater detail. You can call the IRS at 1-800-829-1040 with any additional questions you may have.
As with any other tax deduction, there are exemptions and qualifications, so read the form closely. The relevant section begins at the bottom of the left column on page 25.
Please note – I am linking to the 2007 document as I can’t find the 2008 document yet (it may not have been released yet). If you do want to claim this deduction, PLEASE CHECK FOR THE MOST CURRENT VERSION of this document before preparing taxes, as the rules change from year to year.