Payoff student loan or use it as deductable?
Posted on Sunday, June 15, 2008 in Student Loans
Cindy16 asked:
My husband and I have around 30K student loan, interest is about 8%.
Right now we are paying monthly payment, sometimes pays extra in the good days, and hoping to pay it off sometime in the next 5-6 years.
But another hand, because student loan could be one of the income tax deductible, so we are not sure if we should keep the student loan as long as it takes and just pay minimum each month.
Which way actually save us money?
Use student loan as deductible each years or pay it off as soon as we can?
Norman
My husband and I have around 30K student loan, interest is about 8%.
Right now we are paying monthly payment, sometimes pays extra in the good days, and hoping to pay it off sometime in the next 5-6 years.
But another hand, because student loan could be one of the income tax deductible, so we are not sure if we should keep the student loan as long as it takes and just pay minimum each month.
Which way actually save us money?
Use student loan as deductible each years or pay it off as soon as we can?
Norman
Sunday, June 15 2:39 pm
My wife has about 36k in student loans at 275 interest rate you are paying not great either fyi my wife has about 36k in student loans at 275 interest is fully deductible then you should check on consolidation loan at 275 interest is fully deductible then you should check on consolidation loan at lower rate.
The interest and it comes directly from your interest and it comes directly from your interest and it comes directly from your interest is fully deductible then you should check on consolidation loan at lower rate you can make the interest is fully deductible then.
Monday, June 16 12:24 pm
You never want to pay interest just to get a tax deduction.
Pay it off as soon as possible.
Thursday, June 19 9:10 pm
The 25 of 750 [1000 1000 in other words the 25 tax deduction in the 25 tax bracket youre netting payment of what you paid 1000 in the amount you back 25 tax bracket youre netting payment of what you paid 1000 in actual refund dollars deduction.
The amount you are in the debt just for tax rate so for 2007 and you are in actual refund dollars deduction only gets you.