KrisD15
Expert Alumni

Education

@ledtx

 

I needed to get clarification on this myself. 

 

According to the IRS: 

"Qualified Student Loan

This is a loan you took out solely to pay qualified education expenses (defined later) that were:

• For you, your spouse, or a person who was your dependent (as defined later for this purpose) when you took out the loan;

• Paid or incurred within a reasonable period of time before or after you took out the loan; and

• For education provided during an academic period for an eligible student.

Loans from the following sources aren't qualified student loans.

• A related person.

• A qualified employer plan."

 

Also

 

"Interest on revolving lines of credit. This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. "

 

After obtaining a second opinion, I would say that if you can prove that the loan meets the requirements stated in Pub 970, you could claim the interest as student loan interest. 

Since you do not have a 1098-E (and the IRS also does not have a 1098-E on file for you), be prepared to prove to the IRS that the loan was taken out and used exclusively for education expenses. Do not co-mingle this loan with any other. 

 

I would also suggest you meet with the lender and explain your intent. They may ask you for a W-9S and a statement about using the loan for education expenses and MAY be able to report the interest on a 1098-E going forward. 

 

Lastly, your income may limit your ability to claim the interest. 


 

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