Qualified Education Expenses – Same, Same, But Different
Qualified Education Expenses – this term is used in taxation of education expenses interchangeably, but the definition of what is qualified is not always the same. Let’s break it down.
Student Loan Interest Deduction
The price of secondary education has been skyrocketing – see graph from the Bureau of Labor Statistics.
As the cost of college increases dramatically, so does the amount of student loans that today’s youth need to take on in order to pay for college – image below from WSJ. in 2016, the record was set at over $37k, with 70% of graduating students in debt.
Once you’ve received a student loan, unfortunately you have to pay monthly interest payments in addition to the principal balance. The interest may be deducted from your taxable income up to $2,500 per year.
Whole Story at TFX.