What is the tax benefit to the student loan interest deduction?
If you paid interest on a student loan in 2002, you may be eligible to deduct some or all of the interest you paid, whether the loan was for your own education, your spouse’s, or that of a child or anyone else who was your dependent at the time the education was undertaken. You can take this credit even if you don’t claim itemized deductions. However, only interest paid in the first 60 months that interest payments are required is deductible, and for 2002, the maximum deduction is $3,000. If you refinance the loan you can still claim the deduction, but refinancing does not extend the original 60-month period.
