“Welcome back!” These two words can really make a college student cringe. Back to dorm life, late night cramming, long financial aid lines, and the daunting challenge of getting your books from the campus library before they sell out.
The expenses that come with being a college student can sometimes be more than we anticipate. In fact, many of us rely on student loans just to get us through the semester. I know this feeling all too well!
We all dread having to repay our loans once we graduate, but student loans may not be so bad after all! The money paid towards interest on your student loans is tax deductible, which is great for you and your wallet.
You can deduct student loan interest on your tax return if:
- interest was paid on a student loan that is in your name during the tax year,
- you cannot be claimed as a dependent on another taxpayer’s return,
- you are not filing as “married filing separately”,
- your loans were used for educational expenses for you, your spouse, or your dependent,
- loan money covered educational expenses for a student enrolled at least half-time in an educational program at an accredited institution.
Take it from someone who’s been there. Keep track of your interest payments and take advantage of an awesome tax break at the end of the year. Get to the campus library and locate a Liberty Tax® professional to assist you with claiming your savings!