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Forgive me for such a naïve question, but simply put: do student loan payments count as a deduction to gross income? I.e. if I make $50,000 per year gross and manage to pay $20,000 of loan debt in one year, will I only be tax liable for $30,000 of income? Or does this only apply to loan interest payments?

From this question it seems that only $2,500 maximum of interest is deductible, and payments beyond that are not, but I'm really not sure, thus the question!

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It's only the interest that is deductible. The principle payments don't offset income because when you received the loan it wasn't treated as income.

  • Also there are income limits to interest deductions. – Pete B. Jul 27 '18 at 12:45

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