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Hello Fools,

I've been researching the 60 month student loan interest deduction. After college, I (gasp) defaulted on a student loan. If I do not count the period that I didn't make payments, I am still within the 60 month period. I have found contradictory information within next years IRS filing documents. Can anyone point me to the tax law underlying this rule? All I can find is filing instructions that are too general to address my problem.

Regards,

Reflect
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Can anyone point me to the tax law underlying this rule?

You can look at code section 221 and Proposed Reg 1.221-1.

You're looking at the first 60 months that payments are required. I assume payments were required or you would not have defaulted. So I'm pretty sure those months count toward the 60 month limit.

The pain may not be too bad, as the 60 month limit is scheduled to go away for 2002.

--Peter
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Thanks for your help. I used the information to search and found this link to the Hope - Higher Ed Site. http://www.ed.gov/inits/hope/interest_loans/sectionb.html

The second page addresses defaulted loans. It appears that you are correct. I've checked some other pages, but haven't found it specifically addressed elsewhere.
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