The Pros And Cons Of Student Loans

A qualified student loan is solely used to pay for qualified education expenses, to an eligible educational institution for higher education. Qualified education expenses may include tuition, room accommodation, books, supplies, and equipment. Education loans are subjected to student loan interest during the year, and it may also include required and voluntary interest payments. The deduction of student loan interest is claimed as an adjustment to income, even if the taxpayer does not itemize deductions on Schedule A (Form 1040). One of the limitations concerning the deductibility of student loan interest is that the taxpayer or student can only claim a preliminary tax deduction not exceeding $2500. The tax deduction also limits taxpayer’s