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jg3jlo wrote:

One other thing to keep in mind is that school loans often offer some tax breaks that you won't find with most types of debt. So while your interest rate is 8.5%, if you get to write off that interest then you effectively have a somewhat lower rate.

This is true, but there are quite a few restrictions. Probably the worst is that student loan interest paid is not deductible if AGI is over $60,000 (filing single) or $75,000 (married, filing joint), yet another example of the marriage penalty.

For more info, check the details on the IRS Web site at:

---MountainGuy (who gets excluded from this deduction and so rolled a hunk of his wife's student loan into a HELOC)
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