Comments on: The Student Loan Tax Break Information Loan Brokers Won’t Tell You

By: So Sorry You Couldn’t Stay « Wonk the Plank

So Sorry You Couldn’t Stay « Wonk the Plank — Thu, 13 Mar 2008 21:53:37 +0000

[...] slowly diminishes for people who make more than $55,000/yr, disappearing entirely at $70,000. This frustrated poster makes a very good point: Heavy borrowers in professional school will make too much money to qualify [...]

By: Bd

Bd — Fri, 10 Aug 2007 17:36:04 +0000

From the IRS:

“The amount of your student loan interest deduction is phased out (gradually reduced) if your modified adjusted gross income (MAGI) is between $50,000 and $65,000 ($105,000 and $135,000 if you file a joint return). You cannot take a student loan interest deduction if your MAGI is $65,000 or more ($135,000 or more if you file a joint return).”

http://www.irs.gov/publications/p970/ch04.html#d0e5127

By: Don't Mess With Taxes

Don't Mess With Taxes — Mon, 06 Aug 2007 16:36:26 +0000

Tax Carnival #21: Dog Days of Summer…

First things first: I’m a cat person. To me, the phrase really should be the Cat Days of Summer instead of the Dog Days. Cats, as anyone who’s ever been owned by one, love long summer days. Despite their nocturnal abilities, or maybe because they’re…

By: Kim

Kim — Thu, 26 Jul 2007 13:54:59 +0000

Actually, I worked for the Direct Loan program for two years (www.dl.ed.gov), and they automatically send all of their borrowers the tax form to deduct the interest on their loans at the end of the year. I hated working there due to the idiots that thought their failure to pay bills or understand basic finance (i.e. interest,) was someone else’s fault, but the program itself really runs well, is very fair to borrowers, and is easy to deal with. If you don’t have your student loan through them, try consolidating. I recommended them to a friend of mine, and it saved her a bundle!

By: Jason

Jason — Thu, 19 Jul 2007 18:38:51 +0000

Interest is tax deductible on interest paid on both federal and private student loans so long as the borrower has an adjusted gross annual income of less than $65,000. If the borrower is married, then their combined adjusted gross annual income must be less than $130,000. Remind your tax consultant, finanical advisor and/or CPA of this fact. Most servicing companies will mail interest paid information automatically to you in February. If you never received yours, you can simply call your servicer to get that information.
If you make more than $65K and or $130K jointly yearly, you don’t qualify but you make some good money. I am sure some of the people out there that get write offs will be more than happy to trade those writes offs for your income.

By: Overeducated

Overeducated — Wed, 18 Jul 2007 16:04:36 +0000

Wow! I must be way underpaid. I have two degrees and never made even half of $55,000 in a year. Granted, I have been self-employed for the past several years, but I don’t think I would be able to find a job that paid me that much. Even my income combined with my husband’s falls way below $55,000.