pay interest on deferred loans?

[seethrew]

---

Members don't see this ad.

heya folks... i am getting ready to defer a modest private student loan. i was wondering if anyone here has opinions or experience... has anyone found it possible to pay interest only on such deferrments? is that a bad idea to attempt - or wise enough to be worth losing collision on my old car.... hmmm... and hiding my cell phone until 9pm.... and picking one week a month to eat only top ramen....

 

[TSD77]

Paying off interest now will be beneficial because interest gets added to the principle (capitalized). However, paying off interest on federal unsubsidized loans may be the way to go because those payments are tax deductible unlike interest on private loans. I don't know if you can make interest payments on unsubsidized loans without paying some of it towards subsidized loans, which would not be beneficial because the government pays that interest when deferred.

 

[rgerwin]

All student loan interest is tax deductible.

 

[MountaineerDoc]

All student loan interest is tax deductible.

Only up to a certain amount though??? ($2000-2500) Do a search, this was hashed out pretty good a while ago with some good opposing viewpoints regarding this issue. As for myself, it still left me like a deer in the headlights with what I will do in the future...

 

[rgerwin]

they've increased the amount, i believe.

 

[TSD77]

All student loan interest is tax deductible.

I think only student loan interest on federal loans is tax deductible, not on private loans. This is information that I received from one of my loan companies. I hope I am wrong though so I can deduct the interest on next year's tax return. Anyone have any more info?

 

[nontradappl]

I think only student loan interest on federal loans is tax deductible, not on private loans. This is information that I received from one of my loan companies. I hope I am wrong though so I can deduct the interest on next year's tax return. Anyone have any more info?

According to the IRS website, it seems private loan interest is deductible as well, as long as it's not from a relative and the loan was used for qualified educational expenses. See link and correct me if i'm wrong:

http://www.irs.gov/publications/p970/ch04.html

 

[mshheaddoc]

heya folks... i am getting ready to defer a modest private student loan. i was wondering if anyone here has opinions or experience... has anyone found it possible to pay interest only on such deferrments? is that a bad idea to attempt - or wise enough to be worth losing collision on my old car.... hmmm... and hiding my cell phone until 9pm.... and picking one week a month to eat only top ramen....

First check your private loans to make sure you dn't have to make payments during deferrment. Some require interest only or quarterly payments. Girl you have enough to worry about. Do not worry about the loans b/c you are going to be paying loans with loans. If you have some extra funds I might throw some money on the interest payments (I did that) but honestly, you are going ot have bigger fish to fry. Those loans will still be there when you graduate either way. Yes it might be more expensive because of interest that has accrued (and capitalized b/c now you are paying interest on that "accrued interest" because its now added into your loan). But honestly, I'm not going to worry about it. School is most important and you're scrounging to get by 🙂

Just my .02 for what its worth 😍