November 24, 2009

Parent Plus Loan Tax Exemption

Posted in Parent PLUS Loans, Private Loans tagged , at 2:23 PM by dbonvie

Did you know that any federal loan, including Parent Plus loans which are used to pay for postsecondary education costs, are eligible for tax exemptions? Qualified borrowers are allowed to deduct the loan interest. The maximum education loan interest deduction is $2,500.

There are conditions like income limits that apply to the education loan interest deduction. Consult your tax advisor for more details to see if you qualify.