Student Loan Debt & Tax Deductions

If you are in your 20s and considering bankruptcy, it’s quite possible that overbearing student loan debts are a big part of the problem.  Struggling under the weight of student loan debt is no walk in the park.  However, there are a few things you can do to alleviate your situation.  For starters, did you know that you can deduct the interest you’re paying on student loans from your taxes?

Don’t Miss This Advantage!

If you aren’t deducting the interest from your student loans on your check to the IRS, make sure you start now!  This deduction is only available for 2012.  As of the time of writing, this benefit is not being extended into 2013.

Your lender should send you the IRS Form 1098-E.  The amount of interest that you have paid so far this year should appear on this form.  Make sure that you take advantage of the break, and deduct it!

Also, if you’re struggling under student loan debt, you may be thinking about bankruptcy.  Unfortunately, student loan debt cannot be discharged through any form of bankruptcy.  However, there is good news.  If your debt situation has become an undue financial hardship, you can always file bankruptcy on most all other forms of debt, including credit cards, medical debt, mortgages, and more.