Interest on law school loans

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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Interest on law school loans

Postby Law1491 » Wed May 13, 2015 9:15 am

I have a few questions on financing law school.

1. Scholarship is not taxable income, is it?
2. Interest on law school loans can be deducted from your income. Let's say on 200K loan, the interest is 16K a year. How much can be deducted?

Thank you

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Tiago Splitter
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Re: Interest on law school loans

Postby Tiago Splitter » Thu May 14, 2015 8:04 am

1. Scholarships that cover tuition are not taxable. A scholarship is just like a car salesman offering you a "20k" car for 15k.

2. You can deduct up to $2500 a year in loan interest, but this phases out once you make more than 65k and is totally gone by 80k.

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