JohannDeMann wrote:JenDarby wrote:Anonymous User wrote:I refinanced all of my student loans with SOFI last year (~$61k). I've received 1098-Es from my old lenders indicating that I paid a lot in student loan interest last year. In reality, SOFI paid off these old loans, so I didn't pay these old lenders out of pocket. Still, as far as the paperwork is concerned, it looks like I have a lot of student loan interest payments to deduct. I just finished my biglaw stub year, so my income in 2015 was low enough to take the max $2500 student loan interest deduction.
Has anybody here been in a similar situation? Can I take this deduction, even though I didn't actually pay +$2500 in student loan interest last year?
yes of course. you did pay it, you just borrowed money from sofi to do it.
Holy crap, that's great. I made payments last year but I don't think I came close to $2500 in interest payments. So it looks like the fact that I refinanced during my biglaw stub year is going to save me a few hundred bucks in taxes. Yet another reason to think about refinancing, folks (YMMV).