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Do private student loans affect my taxes?

Answer:

There may be a tax deduction available for interest paid on qualifying private student loans. Check with your loan servicer to see if your loan meets the qualifications.

At the end of each year, your servicer will send you by mail or through its website Form 1098-E, which details how much interest you have paid on your student loan. In general, up to $2,500 in annual interest may be deductible on your tax return, subject to income limitations and other restrictions. However, you should consult the or a tax professional for details.

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