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It was my belief that this tax break is only allowed for periods when payment is due on the loan. When the loan is in deferment, no payment is due, hence the interest is not deductible.

Did I misread the law on this?

You are right. He would have to begin repayment on one of the loans. But with the right repayment schedule, most of his payments could go toward interest, I believe. (And he could switch repayment plans later if he so chose, under the main federal loan programs.)

Thanks for making that point clear. The way I wrote it, it wouldn't have worked.

-- Edmund Ross
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