PLUS Loans make you eligible for tax benefits. You may be eligible for a federal income-tax deduction. $2,500 is the maximum education loan interest deduction. There are conditions like income limits that apply to the education loan interest deduction. Your tax advisor will be able to guide you.
Deducting Student Loan Interest
Till 2001 taxpayers were able to deduct student loan interest during the first 60 months of repayment on a student loan. It used to depend on the amount of income earned. From 2002, limit was eliminated and hence you may be entitled to deduct interest regardless of the age of your loan.
You can order IRS Publication 970, "Tax Benefits for Higher Education", or contact your Tax Advisor for additional information.
For any queries on PLUS Loans, please email us or call (800) 821-5659.
How EdFed Helped others!
I want to thank the loan counselor that worked with me. I appreciate everything she did to help me consolidate my student loans. - Billy N. San Diego, CA