Beginning in 1998, interest you are paying on your student loans will be deductible from you taxes for up to 5 years of interest payments.
Restrictions are significant.
The more money you make, for example, the less interest you can deduct until the benefit is lost completely. You should receive a statement from your lender mailed no later than February 1, 1999. Services performed by a student for any other employer do not qualify for this exception. Another section of the ruling explains how graduate TAs and RAs are also eligible for this exception to taxes, but that post-docs and medical interns and residents are out in the cold and have to pay the FICA taxes. This article was published by the National Association of Graduate-Professional Students.