Are you looking for ways to improve your study habits? Do you want better grades? StudyUp can help you study smarter. You get unlimited space to upload your notes. You can use StudyUp to search for, invite, and network with your Study Buddies. Live feeds give you instant updates when Buddies add notes! Best of - it's all FREE! Sign Up Today!
- Careers in Science
- Careers in Medicine
- Careers In Nursing
- Careers in Engineering
- Careers in Accounting
- Math Online
- Math Lessons
- Student Jobs
- Student Loans
- Student Accommodation
- Student Finance
- College Students
- High School Students
- International Students
- Student Houses
Join StudyUp.com Today
It's always free and anyone can join!Watch StudyUp Demo Video Now
Student Loan Interest
Need Student Loan Interest Study Help?
StudyUp can help improve your grades by enabling you to store all of your notes online, and network with other students - all for FREE!
Roy Said:Student loan interest acceptable if gained through garnishment?
We Answered:If you paid it, you paid it, no matter how they got it from you. Yes, you can still take the deduction.
Debra Said:Why would student loan interest lessen your refund?
We Answered:Why would you ADD interest paid to your wages?
Wouldn't this be subtracted along with other deductions?
Paula Said:Tax deductions on student interest loan payments outside India?
We Answered:The deduction for educational loan is allowed as per provision u/s 80E of the I T Act. One of the condition for allowance of deduction is that it should be taken from Indian banks or financial institution notified by Govt of India.
Read the provision u/s 80E
80E. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education or for the purpose of higher education of his relative
The term Financial institution is defined under the same section as under
financial institution means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette99, specify in this behalf;
Since you have taken loan from a US financial institution which may not be a banking company under Banking Regulation Act or notified as financial institution, you MAY NOT get the deduction u/s 80E of the I T Act.
Dennis Said:What is the maximum student loan interest you can reclaim on taxes per year?
We Answered:The student loan interest deduction is capped at $2500.
Arthur Said:How do I estimate my student loan interest payments?
That's not really possible to predict, because you would need to know the actual interest rate, not just the starting rate of 8.2%.
Here's what you need to do...
First of all, you need to read the Promissory Note, and find the section where it explains how your interest rate will be determined. The important things are:
What is the base rate or "index"
What is the "spread" or "margin"
How many times a year is the rate re-adjusted
Are there caps, either of a ceiling, a floor, or both
Your starting rate of 8.2% was determined by some kind of formula. If I had to guess, your rate is probably "Prime PLUS 5.0%"
Right now, the prime rate is 3.25, so prime plus 5 is 8.25%.
I don't know how often your rate is readjusted - that's in your agreement. It will probably be quarterly - once every three months.
When your rate is readjusted, the lender will take the prime rate for that day, and add five percent. Obviously, that means that the key for you is what happens to the prime rate over the next 6 years.
One year ago, the prime rate was 5 percent. If it returns to 5 percent, the interest rate on your loan will jump to a total of 10%. In parts of 2006 and 2007, the prime rate was 8.25%, for most of 2000, it was 9.0 and 9.5 percent.
If your loan has a cap, there may be a particular rate that your loan won't fall below, and there may also be a particular rate that your loan won't climb above. The higher number is the most important to you - that's your protection.
If you assume an average interest rate of say 8.9% over the 72 months of repayment, you'll pay about $90 a month. As you can see, though, it's impossible to predict exactly what your rate will be. However, even if the rate goes as high as 11.9%, your monthly payment will still be less than $100.
I hope that helps - and make sure you understand exactly how the variable rate works before you sign the note! Good luck!
Pulau Tidung said:
doing work in the field connected with tourism is at desperate want excellent abilities. working function site is very appropriate in my opinion that an specialist in the field of travel.
Wisata Pulau Pari said:
doing work in the field of tourism is in desperate want excellent abilities. working job site is incredibly appropriate in my opinion that an expert in the field of trip.