I have a private party that would be interested in paying off my student loans and in turn, extend me a loan at a slightly reduced interest rate. This makes sense to me until I get to the point where I figure out what I possibly lose in tax deductions. Before I break out the ti-83, is it possible to deduct a private student consolidation loan?
After a commenter (who seems to have deleted their comment) mentioned "Qualified Student Loans" that gave me enough of a spring board to eventually find IRS Publication 970 which states:
Loans from the following sources are not qualified student loans.
- A related person.
- A qualified employer plan
That is reasonably clear.
