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federal student loans

Student Loans: Here's How To Save Money On Your Taxes

Want to save money on your taxes?

Here's what you need to know about student loans and taxes.

Student Loans: Taxes

If you made payments on your federal student loans in 2018, you may be able to save money on your federal income taxes.

1. Student Loan Interest Deduction

In certain cases, you can deduct on your federal income taxes the student loan interest you paid on your federal student loans.

All the Ways You Can Get Your Student Loans Forgiven

With the average student loan balance hitting $29,800 for the Class of 2018, you’re probably looking for any help you can get paying off your debt. And if you meet certain requirements, it’s possible to have a portion of your balance forgiven.

Not everyone qualifies for forgiveness: If you have private loans, for example, you’re on the hook to repay the full amount, and every forgiveness program has strict requirements. You shouldn’t count on forgiveness to get your debt under control, and you should never pay anyone who promises to get your debt forgiven—it’s likely a scam.

Frustrated by the Public Service Loan Forgiveness program? These tools can help

Most people pursuing public service loan forgiveness discover at some point that they don't qualify, for one technical reason or another.

That may be because their loan type is ineligible or they're not in the right repayment plan.

The Public Service Loan Forgiveness program was signed into law by President George W. Bush in 2007 and allows not-for-profit and government employees to have their federal student loans erased after 10 years of on-time payments.

How To Ace Public Service Loan Forgiveness

If you qualify for student loan forgiveness, then you potentially can save thousands of dollars on your student loans.

If you work in public service, in particular, then Public Service Loan Forgiveness is a must-know program for your financial life.

However, the requirements can be confusing.

So, let's simplify it for you. Here is a go-to guide on how to qualify and apply for Public Service Loan Forgiveness:

What Is Public Service Loan Forgiveness?

Public servants confused about the future of loan forgiveness they’ve been counting on

For years, student loan borrower advocates and concerned borrowers themselves have sounded the alarm over the future of a government program offering student loan forgiveness for public servants.

Wounded veteran sees student debt forgiven but $62K tax bill

BATH TOWNSHIP, Mich. (AP) - The IRS is asking a wounded veteran from Michigan to pay $62,000 in income taxes on the federal government’s cancellation of his student loans.

First Lt. Will Milzarski served two tours in Afghanistan that left him with a traumatic brain injury, post-traumatic stress disorder and hearing loss. The federal government canceled $223,000 in student loan debt after deeming him totally and permanently disabled.

Find & Compare Private Student Loans for Your School:

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Introduction to Federal Student Loans

Several low-cost, fixed-rate loans are available to undergraduate students, graduate students, and parents of dependent undergraduate students from the U.S. Department of Education’s Direct Loans and Perkins Loans programs. Find out more about federal student loans.

No Income? No Problem! How the Gov't Is Saddling Parents with College Loans They Can't Afford

More than a decade after Aurora Almendral first set foot on her dream college campus, she and her mother still shoulder the cost of that choice.

As Parents Struggle to Repay College Loans for Their Children, Taxpayers Also Stand to Lose

Parents are increasingly struggling to repay federal loans they’ve taken out to help cover their children’s college costs, according to newly released federal data.

The Parent Plus program allows parents to take out essentially uncapped amounts to cover college costs, regardless of the borrower’s income or ability to repay the loan. As the cost of college has risen, the program has become an increasingly critical workaround for families that max out on federal student loans and can’t pay the rest out of pocket.

Default Data on Parent PLUS Loans

The national default rate for Parent PLUS loans has nearly tripled in recent years, but it remains well below the

default rates for other federal student loans, according to data released for the

rst time last week by the U.S.

Department of Education.

Of all parent borrowers whose PLUS loans entered repayment in the 2010

scal year, the data show, 5.1

percent were in default three years later. That

gure has risen steadily from the 1.8 percent default rate for the

cohort of borrowers in the 2006

scal year.

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“This would be a much better world if more married couples were as deeply in love as they are in debt.”
– Earl Wilson
“What I would like to do... once I take care of all my kids' student loans, is buy a red 1965 Mustang and fully restore it.”
– Mike Quigley
The road to success is always under construction
– Lily Tomlin
"Nothing in life is to be feared. It is only to be understood."
– Marie Curie
"There is scarcely anything that drags a person down like debt."
– P. T. Barnum
"If we don't change direction soon, we'll end up where we're going."
– Irwin "Professor" Corey
"Bankruptcy laws allow companies to smoothly reorganize, but not college graduates burdened by student loans."
– Robert Reich