Paying off student loan debt

Forum|Forum|8 months ago
September 16, 2025
2 replies
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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.

Best answer by rjs

Expert Reviewed

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

rjs

Answer

Level 15

Expert Reviewed

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

Hal_Al

Level 15

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.