Many college students in the United States today take out students loans in order to pay for the expenses incurred with higher education. These loans can vary in structure and amount from federal Stafford loans to private loans held by banks or student loan lending institutions.
After a student graduates or ceases to be enrolled at least half-time at a qualifying institution, many student loans begin accruing interest. Other loans begin earning interest on the principle balance once they are disbursed. All of these interest payments can become a hefty expense for college graduates, especially for those with a large amount of debt tied up in student loans.
The Student Loan Interest Deduction
According to the United States Department of Education, anyone who has paid interest on a student loan during a calendar year can claim interest payments on personal income tax filings.
