Paying off student loan debt

[user17580547916]

My student loans were under the SAVE Plan. I could make payments with no interest based on my income. I paid off the entire student loan (about $7800.00) this year and none of it went to interest. Is there any tax deduction for this? It was a federal student loan. 

[rjs · Accepted solution]

Sorry, no. There is a deduction for paying interest on a student loan. There is no deduction for paying the principal.

[Hal_Al · Accepted solution]

For others reading this:

If you have a Qualified Tuition Plan (QTP), e.g. 529 plan, you are allowed to use the money in that plan to pay off a student loan (up to $10,000), without paying any tax (or penalty) on the plan distribution (withdrawal).  The $10,000 is a lifetime limit.