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Interest on student loans - Tax ?ions

Date: Sun, 11/01/2009 - 20:02

Submitted by anonymous
on Sun, 11/01/2009 - 20:02

Posts: 202330 Credits: [Donate]

Total Replies: 2


I recently paid off Private student loan that was in default. Original balance was $4,000 which ballooned to $10,500. The CA (Collection Agency) the loan was assigned to accepted a lump sum of $8000 to settle the debt. I was wondering if I am now entitled to take a tax credit for the interest and fees ($4,000) for my federal tax return. If so, how much can I claim per year (does it roll over) and are the tax documents automatically sent to me by the CA, or do I need to request from CA and/or the original lender? Thanks in advance!