Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Beginning this year (applicable for returns filed next year), interest on educational loans is deductible. It's a slideing scale of deductibility based on income and is only applicable for five years of interest.

What I haven't been able to figure out is

(1) Is the deduction limited to loans which financed undergradute education or can impoverished doctors and lawyers (believe me, such a class does exist) also take advantage of it to pay back their grad school debt; and

(2) When does the five year period start running? At the time of the loans distribution which is often the time the interest starts accruing. Or at the time the first payment is made on the loan.

Any advice would be appreciated
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement