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If i consolidated my student loans. through a new company. can i take the student loan interest deduction?
Financial Aid
Sarah asked:
I havn’t actually paid any money out of my pocket towards interest. However, I did take out a new loan which paid off my old one. They are from different companies, but they are both still direct loans. I technically paid the intrest off by borrowing a new loan. Can I take the student loan interest deduction for this year?
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Tags: Consolidated Loans, Different Companies, Direct Loans, Money, Student Loan Interest, Student Loan Interest Deduction, Student Loans
September 26th, 2008 at 1:44 am
Yes, I do. Here’s was the federal student aid website states:
Helpful Hints:
For tax years 2001 and prior, the amount entered in the interest paid column above and the amount entered in Box 1 of your 1098-E is the sum of interest that the U.S. Department of Education received on your Direct Loan(s) for that year.
For tax year 2002 and greater, the amount entered in the interest paid column above and the amount entered in Box 1 of your 1098-E is the sum of interest, capitalized interest, and loan origination fees that the U.S. Department of Education received on your Direct Loan(s) for that year.
September 28th, 2008 at 11:32 pm
yes, your interest is deductable no matter who you pay it to.
October 1st, 2008 at 1:58 pm
yes
Good Luck!!!
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