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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

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.