Question about taxes and school loans...?

Question

I have a few school loans.. I think one pell grant and the rest are federal ones that I have taken out to pay for the rest of school.. but what I want to know is.. do they send you some kind of form around this time of the year so you can take it in when you do taxes.. or do you just bring in the stuff you already have. And would I get any money back at all on either loans? Thanks!

Answer 1

You should receive a 1098-E form sometimes aka "Student Loan Interest Statement" from the loan holder. This form shows the amount of INTEREST PAID on your loan during the last year. If you're still in school, drop by the financial aid office and ask if there are others forms you should receive.

WhenI was in school, you didn't have to start making payments on your student loans until 6 months after graduation. Therefore, if you are still in school, you probably won't receive this form - no payments = no interest paid = no form.

BUT - you still may be able to deduct some of the costs associated with your schooling. Keep ALL your school-related receipts (including textbooks, etc) and all your financial aid information (the amount you received in grants, etc.) . Judging from your screen-name, I'm guessing you may have children. If you used any type of daycare facility to watch them so that you could attend classes, make sure to get a receipt from them showing the amount you spent during 2006 - a portion of this could also be tax-deductible.

Basically - keep ALL of your financial aid info and all SCHOOL-RELATED receipts. Then take it all to a good tax adviser. Good luck.

Answer 2

You should have gotten a 1098-T form from your financial aid office. It will show any money that you paid in on your education last year.

Answer 3

You should get a letter stating the amount of interest you paid so you can write it off.