Question : Is student loan still tax deductable when refinancing a student loan with a personal loan?
My daughter has two very high interest student loans. Her credit won't let her do anything, but I can "refinance" it with me getting the loan using my credit. But is it still a "student" loan that she can deduct. She is making the payments and her name will be also on the loan (ironically, she will co-sign for me). This seems to be some gray area once the loan gets moved around. Just want to make sure the "chain of custody" still makes the new loan interest tax deductable. Hope this made sense and thanks for your help.
- asked by Andrew M
All Answers:
Answer #1
Nope, sorry, but personal loan won't qualify, asyou will have nothing in writing to say that it isstudent loan interest.
- answered by PepsiLime
Answer #2
It wasn't that very clear, but from what Iunderstood your co-signing on the loan. She'll payfor the loan's premium and interest. and that'sabout it ... Remember: Who ever pays the studentinterest, that person will have the right todeduct those interest payments on their tax return(up 2,500). The only thing that I can figure thatwill absolutely confirm that you are paying astudent loan is that if at the beginning of thetax season, you receive a 1098-E "Student LoanInterest Statement" from your Lender.
- answered by mechbasket
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