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!


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

Your Answer

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Not the answer you're looking for? Browse other questions tagged or ask your own question.