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Are interest payments on an international education loan deductible?

Forum|Forum|7 years ago
June 6, 2019
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Say I am an international, graduate student currently studying in the U.S. and am paying income taxes on my stipend. I have loans from my undergraduate education in a foreign country, and I am currently making interest payments on those loans. Can I apply the Student Loan Interest Deduction to the interest payments I am making for my foreign education loan?

Thank you.

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Best answer by Marketstar

There is no requirement that an educational loan be from a U.S. bank.

A Qualified Student Loan is a loan that was taken out solely to pay qualified education expense that were for the taxpayer, spouse, or a person who was a dependent (defined earlier in this course) when the loan was taken out.

The loan must be paid or incurred within a reasonable period of time before or after the loan was taken out, and for education provided during an academic period for an eligible student.

Loans from a related person or a qualified employer plan are not qualified student loans.

M

MarketstarAnswer

Employee

There is no requirement that an educational loan be from a U.S. bank.

A Qualified Student Loan is a loan that was taken out solely to pay qualified education expense that were for the taxpayer, spouse, or a person who was a dependent (defined earlier in this course) when the loan was taken out.

The loan must be paid or incurred within a reasonable period of time before or after the loan was taken out, and for education provided during an academic period for an eligible student.

Loans from a related person or a qualified employer plan are not qualified student loans.