A Message About Student Loans and Tax Liability from TGS Student Funding
Please note when you apply for and take out student loan funds (e.g., Stafford loans) for your educational needs, this is not considered taxable income. The government expects you to pay back your student loans, with interest, at the appropriate time, therefore they do not take taxes out on the loans. However, when you begin repaying your loans, you may qualify for a student loan interest deduction when you file taxes, depending on your income at the time and how the loan funds were used.
Categories: From the Dean