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Can You Deduct Your Student Loan Interest?

According to the IRS, you may be able to deduct the interest paid on your student loan.  The loan must have been used to pay for your qualifying educational expense.  These include tuition, room and board, lab fees, books, and other expenses. 

Who Can Qualify For The Deduction?
If you took out a loan for your education, or for your spouse or qualifying dependant, you can deduct the interest paid.  The student has to be enrolled at least half time in an accredited college, university or vocational program to qualify.  Also, there are income limitations, if you earned above the limits established by the IRS you cannot deduct the interest.

Do All Loans Qualify For The Deduction?
All Federal Stafford, PLUS and FFELP loans qualify.  Other loans,

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including private loans, do not automatically qualify, but may be eligible.  You will need to file a completed W-9S Form, to verify that the loan was used solely to pay for qualified education expenses.

As long as you meet the requirements, you may deduct the interest paid for the life of the loan.   Also, if you are married, you have to file a joint return, you are not allowed to file separately. 

To learn more about the eligibility requirements for a student loan interest deduction, you can obtain additional information from the IRS.  Forms are available online or at your local library or post office.  This is a summary of the tax requirements.  For more, detailed information you should contact either the IRS or a qualified tax advisor to determine if you qualify.




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