Will federal student loans increase or decrease my tax returns?

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Will federal student loans increase or decrease my tax returns?

I am still attending school and do not/ have not paid until I graduate.

2007-01-30 04:04:52 · 2 answers · asked by Bubba 1 in Business & Finance ➔ Taxes ➔ United States

2 answers

Neither. A loan isn't taxable or deductible. When you start paying them back, interest will be deductible.

Check on education credits that you might be eligible for.

2007-01-30 05:02:55 · answer #1 · answered by Judy 7 · 0⤊ 0⤋

They will not affect your tax returns if you're not paying interest on them.

Once you begin making payments against the student loans, you will be able to deduct the portion of the payments that went towards interest.

2007-01-30 05:38:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋