How To Handle Student Loans Effectively

Deduct Loan Interest

Student loan interest is deductible, but only if you are making loan payments. The current tax laws allow you to deduct loan interest on your student loans if you fall within specific parameters. Specifically, if you are a single tax filer with an adjusted gross income of less than $80,000 per year, you can deduct your student loan interest. However, if you’re married and you file a joint income tax return, you do not get to deduct this interest if your income exceeds $165,000. If you are not sure how to do this, read about the tax laws on the Internal Revenue Service’s website or find out how these laws are made by speaking to your accountant. You can deduct as much as $2,500 in loan interest, which is a nice amount of savings on your income tax return. It can sometimes allow you to receive a refund, which you can then use to help pay off your loans.

Continue reading to learn about not putting off loan payments.