Monday, July 16, 2007
Fill educational gap
Student loans are actually a good deal. Interest rates are below market, there's no collateral and repayment usually begins only after graduation. For 2001, federal tax law permits deduction up to $2,500 in student loans interest payments.
Joint filers with adjusted gross income of $60,000-$75,000 or less and single of $40,000-$55,000 or less can avail this deduction. The deduction on interest is restricted to the first 60 months consecutive. As long as it is student loans, it doesn't matter whether it's the student, parent or spouse. The person responsible for the student loans gets the deduction. A dependent student has no claim to the deduction if another taxpayer has claimed him as a dependent the same taxable year. For a taxpayer getting married toward the end of the taxable year, joint filing is required for the deduction.The federal government is the largest among providers of student loans. Educaid.com and FinAid.org are worth visiting for the more typical student loans programs. Financial need will determine interest rates under Perkins student loans or delayed repayment schedule under Stafford student loans. Standards are similar to student aid.
# posted by karthika : 2:39 AM
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