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?
2007-01-05 07:08:13 · 3 answers · asked by Sarah 3 in Education & Reference ➔ Financial Aid
yes, your interest is deductable no matter who you pay it to.
2007-01-05 07:12:05 · answer #1 · answered by sdmike 5 · 0⤊ 0⤋
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.
2007-01-05 07:10:21 · answer #2 · answered by Melli 6 · 0⤊ 0⤋
yes
Good Luck!!!
2007-01-05 07:13:46 · answer #3 · answered by Anonymous · 0⤊ 0⤋