Can Student Loan Interest Be Used As A Tax Deduction If The Loans Are In Deferment/forbearance?

A Reader Asks…

I know that student loan interest can be deducted.
My student loans are all either in deferment or forbearance. I’m accruing interest on some of them, but I haven’t actually paid any interest yet. Can I deduct the interest that accrued?
Thanks!

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Tags: Deduction, Deferment/forbearance, interest, loan, Low Rate Loans, Student, Used

This entry was posted on Tuesday, July 14th, 2009 at 7:30 am and is filed under Tax Relief Help. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Can Student Loan Interest Be Used As A Tax Deduction If The Loans Are In Deferment/forbearance?”

1. Judy Says:
   July 14th, 2009 at 8:37 am

   No, you can only deduct the interest when you actually pay it, not when it accrues

2. TaxGurl Says:
   July 14th, 2009 at 12:54 pm

   You can only deduct interest that you actually PAID during the tax year, not the interest that is accruing. Sorry to be the bearer of bad news but you have to wait until you start making payments on the loans to be able to take a deduction for any of the interest.

3. Wordpress Plugins Says:
   July 14th, 2009 at 5:05 pm

   $0 paid, $0 deductible.

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