Is the interest rate on student loans tax deductable?

[instigata]

Title says it all...is it tax deductable? Thanks!

---

Members don't see this ad.

 

[Lesley]

Title says it all...is it tax deductable? Thanks!

I found this on one financial website:

"Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. However, if your modified adjusted gross income (MAGI) is less than $65,000 ($135,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2005."
Source: IRS Publication 970, Tax Benefits for Education, Chapter 4,