Are There Any Limits On What Qualifies As A Student Loan?
Yes. The loan must have been used to pay the costs of attendance at an eligible educational institution for a student enrolled at least halftime in a program leading to a degree, certificate, or other recognized educational credential. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution that is described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088) and, therefore, eligible to participate in the student aid programs administered by the Department of Education.
This category includes virtually all accredited public, nonprofit, and proprietary postsecondary institutions. For purposes of the student loan interest deduction, eligible educational institutions also include institutions that conduct an internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training.
The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.
Additional Student Loan Interest Deduction Articles
- Is A Student Loan Interest Deduction Available If The Student Loan Is Not Federally Guaranteed Or Otherwise Subsidized?
- What Costs Are Included In The Costs Of Attendance?
- Is The Deduction Available For Interest Paid On Loans Used To Pay For Graduate School?
- Are There Any Limits On Who May Take The Student Loan Interest Deduction?
- May A Former Student Whose Loans Are Already In Repayment Deduct The Interest They Pay On A Student Loan On Or After January 1, 1998?
- May A Parent Claim The Student Loan Interest Deduction If The Parent Borrows To Pay His/Her Childs Costs Of Attending College?
- If An Individual Has Paid More Than $1,000 In Interest On Student Loans In 1998 And Is Otherwise Eligible To Take The Maximum Student Loan Interest Deduction, How Large A Deduction May The Individual Claim?
- Does An Individual Have To Itemize His/Her Income Tax Deductions To Claim The Student Loan Interest Deduction?
- If A Student Is Claimed As A Dependent By His/Her Parent In A Particular Taxable Year, May The Student Take The Student Loan Interest Deduction For Student Loan Interest That He/She Pays In That Year?
- Are Tax Benefits Available If The Student Repays His/Her Loan By Performing Community Service Rather Than Making Cash Payments?