Student Loan Forgiveness Equals No Tax Break

Unfortunately, many are learning that the Student Loan Forgiveness equals no tax break this year. While many were thankful to not have to make student loan payments during the pandemic,…

Cody

Published Mar 26, 2021 3:34 PM EDT

IRS student loan forgiveness no tax break

Scott Olson/Getty Images

Unfortunately, many are learning that the Student Loan Forgiveness equals no tax break this year.

While many were thankful to not have to make student loan payments during the pandemic, there is a downside. Borrowers doing their taxes are quickly finding out that they won't get a deduction for those student loan interest payments, according to tax experts. For some people, that deduction could be as high as $2,500.

“You can claim the student loan interest deduction based only on amounts actually paid,” says industry expert Mark Kantrowitz.

President Joe Biden has paused student loan payments through September.

Does not making monthly payments offset the tax break? How long have you been paying on your student loan?

Have you done your taxes this year? How prepared are you?

(Source: Fox Business)

CodyEditor

“Cody” Blaine Jackson is one half of the Kicks Wake Up Krew on Kicks 99, and also serves as the Digital Program Director for Beasley Media Group in Augusta. She’s a Georgia native but currently resides just across the river in South Carolina. She started in the radio industry as a part-time board operator, and moved up through various roles, including on-air positions and program director for multiple stations. Her passions include fitness and anything to do with animals, as she has two fur babies, her dogs Harley and Waylon. Cody likes to write about pets, fitness and Augusta local events.

Student Loan Forgiveness Equals No Tax Break

Unfortunately, many are learning that the Student Loan Forgiveness equals no tax break this year. While many were thankful to not have to make student loan payments during the pandemic,…

Cody

Download our station app