What are qualified loans for purposes of the deduction?
Qualified loans include those taken out to pay tuition, fees, living expenses, books, supplies, transportation, and equipment expenses. Most federal and private education loans would be eligible for this type of deduction, including all Federal Stafford and PLUS. Private student loans do not automatically qualify. However, if you send your private loan lender a W-9S form, the interest paid on your private loans would be eligible for deduction. A W-9S is an IRS form, which certifies that the funds disbursed were used solely for education expenses such as those mentioned above.
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