Does it make sense to pay the interest on nonsubsidized stafford loans while still in school? My spouse works so if we paid the interest would we then be able to deduct the value of the interest payments from our income taxes? Thus while we would pay money in interest payments, this would be offset by the tax savings - up to whatever the maximum the ($2500?) IRS allows you to deduct of course. I realize the best thing would be to use that money to pay tuition rather than borrow but seeing as how my tuition is almost as much as her anual income, we can't contribute significantly to the actual cost of education right now but could probably afford to pay some of the interest if we could reclaim it on our tax returns. Or am I missing something here?