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July 15, 2020
Question

Is there interest paid on student loans if paying through garnishment?

  • July 15, 2020
  • 2 replies
  • 0 views
How do I know how much interest is paid if only paid through garnishment?

2 replies

Employee
August 19, 2020

Your lender will have to tell you that. 

Carl11_2
Employee
August 20, 2020

Generally speaking, if you don't receive a 1098-E, then you have nothing to deduct. It's common by the time it gets to something such as garnishment, things are so far in default that the lender just wants their money back. It's also true (in most cases) that when the defaulted loan is sold (generally to a collection agency) then it's no longer a "qualified" student loan; when means the interest just flat out is not deductible.