The cost of higher education can be overwhelming. It can be especially hard for those who pay for it themselves. Student loans kick in after graduation, while many graduates are working low-paying entry level jobs. Every little bit helps, and those paying student loans can get a break with their tax return. Find out qualify for a student loan interest tax deduction.
Instructions
1. Claim loans that are for qualifying educational expenses only. This includes things like tuition, room and board, books, supplies and transportation. It may even include daycare if the student is a parent.
2. Be sure that the loan is from a qualifying source. This means an institution such as a bank or credit bureau, and it cannot be a personal loan from a relative or friend.
3. The loan must be for you, a spouse or a dependent only. A dependent must live with you, be related to you and provide less than half of his or her own support.
4. Be sure the loan is within the specified period of time. The loan must have been disbursed within 90 days of the academic periods, such as a semester or trimester. It also must end within 90 days.
5. The loan must be for an eligible student only. The student must be enrolled in a credited degree or certificate program. This may be a university, a vocational school, technical school or junior college.
6. Enroll the student in at least half-time status. Status differs from school to school. Full-time is usually somewhere between 9 and 15 credit hours, 12 being the most common in state universities.
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