Student Loan Deductions

[wipedown]

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The interest paid on student loans is tax deductible.

If one owes $200/month on student loans and 50% of that $200 is interest (from the amortization schedule); can one just pay and deduct the $100 in interest and forbear the rest?

Or does paying $100 = only 50% deduction?

 

[Sol Rosenberg]

This depends upon how your lender "counts" your payments and is not really a tax issue. You can deduct (with some limitations and phaseout depending upon your AGI, etc) the interest you pay on student loans. Period. So, everything your lender "counts" as interest is deductible.

 

[The White Coat Investor]

There is a phase out on student loan interest. If you make more than $65,000 and are single or more than 135,000 and are married, you don't get to deduct. Ha ha, pulled a fast one on those doctors.

 

[Caboose]

Thank you ActiveDuty - I didn't know that. I have to hurry up and get hitched to two or three people.

Caboose.