Unfortunately, you do not get a deduction for paying off your student loans. However, you can deduct the interest you paid in 2018, up to $2500.
No there is no deduction for paying off your student. Interest on your student load was deductible.
I need to make a decision whether to help my grandson with his loan. He left school years ago and never returned. I’m a second on his loan and he can’t pay the loan off. Is there any benefit to helping him. He owes $36,500 in principal and accumulated interest. He has already paid $27,000 over the last 12 years. I’m trying to help him reduce his debt by paying his loan down, but is there any benefit to me to do this. I understand that their is a maximum credit of $2,500. At this time I’m not sure I want to do this. I need help.
Q. I’m trying to help my grandson reduce his debt by paying his loan down, but is there any tax benefit to me to do this?
A. Simple answer: No. The only tax benefit is the (up to) $2500 deduction (not a tax credit) for paying qualified student loan interest. But, you, most likely do not qualify for that deduction. One requirement is that you are legally obligated to pay the loan ("I’m a second on his loan" probably meets that requirement). But the 2nd requirement is that he must have been your dependent back when the loan money was used for education. The 3rd requirement for the deduction is that you actually pay the interest.