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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
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