Comments on: Why Now is the Time to Consolidate Your Student Loans (and Get an Interest Rate as Low as 3.6%)! http://simpledebtfreefinance.com/why-now-is-the-time-to-consolidate-your-student-loans-and-get-an-interest-rate-as-low-as-36/ A Simple Approach to Getting Out of Debt and Into Wealth Thu, 24 May 2012 03:12:56 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Joe http://simpledebtfreefinance.com/why-now-is-the-time-to-consolidate-your-student-loans-and-get-an-interest-rate-as-low-as-36/#comment-55 Joe Wed, 06 Aug 2008 17:06:14 +0000 http://simpledebtfreefinance.com/why-now-is-the-time-to-consolidate-your-student-loans-and-get-an-interest-rate-as-low-as-36/#comment-55 MGL, Thanks for contributing. Yes, student loan interest is tax deducible provided you meet IRS guidelines: "You can claim the deduction if all of the following apply: 1. You paid interest on a qualified student loan in the prior tax year 2. Your filing status is not married filing separately 3. Your modified adjusted gross income is less than $65,000 ($135,000 if filing jointly) 4. You and your spouse, if filing jointly, cannot be claimed as dependents on someone else's return A qualified student loan is a loan you took out solely to pay qualified higher education expenses. See the instructions for Form 1040 to determine if your expenses qualify. " The best part is that: The deduction is claimed as an adjustment to income so you do not need to itemize your deductions on Schedule A Form 1040. http://www.irs.gov/taxtopics/tc456.html BTW: 100k sounds extremely painful. I know it's law school and many people think lawyers make big money, but not every one is a trial lawyer, It sounds like you're keeping an eye on though. It was a good move to consolidate. Easily one of the best financial decisions I made at the time. MGL,

Thanks for contributing.

Yes, student loan interest is tax deducible provided you meet IRS guidelines:

“You can claim the deduction if all of the following apply:

1. You paid interest on a qualified student loan in the prior tax year
2. Your filing status is not married filing separately
3. Your modified adjusted gross income is less than $65,000 ($135,000 if filing jointly)
4. You and your spouse, if filing jointly, cannot be claimed as dependents on someone else’s return

A qualified student loan is a loan you took out solely to pay qualified higher education expenses. See the instructions for Form 1040 to determine if your expenses qualify. ”

The best part is that: The deduction is claimed as an adjustment to income so you do not need to itemize your deductions on Schedule A Form 1040.

http://www.irs.gov/taxtopics/tc456.html

BTW: 100k sounds extremely painful. I know it’s law school and many people think lawyers make big money, but not every one is a trial lawyer, It sounds like you’re keeping an eye on though. It was a good move to consolidate. Easily one of the best financial decisions I made at the time.

]]> By: MoneyGrubbingLawyer http://simpledebtfreefinance.com/why-now-is-the-time-to-consolidate-your-student-loans-and-get-an-interest-rate-as-low-as-36/#comment-54 MoneyGrubbingLawyer Wed, 06 Aug 2008 16:51:25 +0000 http://simpledebtfreefinance.com/why-now-is-the-time-to-consolidate-your-student-loans-and-get-an-interest-rate-as-low-as-36/#comment-54 That sounds like an excellent consolidation arrangement for anyone who is eligible. I graduated with $100k+ in student loans. I didn't consolidate my Canadian government loans (the interest is tax deductible), but managed to consolidate the rest at 5.25%-and I was happy with that :). Is student loan interest usually tax deductible in the US? That sounds like an excellent consolidation arrangement for anyone who is eligible.

I graduated with $100k+ in student loans. I didn’t consolidate my Canadian government loans (the interest is tax deductible), but managed to consolidate the rest at 5.25%-and I was happy with that :) .

Is student loan interest usually tax deductible in the US?

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