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  • Question about federal student loans

    My husband and I took out a federal student loan last year to help pay for our twins' college expenses.


    This summer we had to start making payments on the loan. The interest rate is not as low we would have liked.



    We have a credit card that offers a 0% interest loan for the entire length of the loan until the balance is paid off.


    Here's my question: If we were to to transfer the federal loan to the zero interest credit card, would we still be able to write off the college expenses on our tax forms? And would we have to show proof that the credit card loan went to the college expenses and not something else?



    If no one knows the answer, I guess I'll have to figure out who to contact to ask the question.

  • #2
    Re: Question about federal student loans

    I just asked Bryan his thoughts. He's almost positive the answer is "no" to the still getting a tax write-off. He says to also consider the savings of both routes. Is the tax write off worth more than the savings of transfering to the credit card and vice versa?

    In your shoes, we would contact HR Block or some such similar service.

    Good luck!
    "But every night, when it gets dark
    and the stars come out,
    I'll look up on her behalf.
    I'll look up in the sky and think of you."





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    • #3
      Re: Question about federal student loans

      Typically student loans stay in a forbearance state while the student(s) are enrolled full time in a qualifying institution. Why are you having to begin paying on them now while C and B are still in school? Maybe things have changed since the last century when I was actually in school.

      And no, you would not be able to use the credit card balance as a tax write off even if you have proof of the balance transfer. The IRS isn't very trusting


      It wasn't me, it was Lisa! :angel:

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      • #4
        Re: Question about federal student loans

        Originally posted by Princess Buttercup View Post
        My husband and I took out a federal student loan last year to help pay for our twins' college expenses.


        This summer we had to start making payments on the loan. The interest rate is not as low we would have liked.



        We have a credit card that offers a 0% interest loan for the entire length of the loan until the balance is paid off.


        Here's my question: If we were to to transfer the federal loan to the zero interest credit card, would we still be able to write off the college expenses on our tax forms? And would we have to show proof that the credit card loan went to the college expenses and not something else?



        If no one knows the answer, I guess I'll have to figure out who to contact to ask the question.
        I really don't know the answer to your question but I would advise you to speak to a personal CPA if you have one.

        Good luck.

        Comment

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