Interest Tax Deduction
Beginning January 1, 1998, taxpayers who have secured loans to pay the cost of attending an eligible educational institution for themselves, their spouse, or their dependents may generally deduct the interest they pay on these student loans.
The student loan interest deduction is available for interest payments due and made on or after January 1, 1998. Thus, the first time taxpayers will be able to claim the deduction is when they file their 1998 tax returns in 1999. Interest deductions apply to Federal, private, and institutional loans.
If you wish to learn whether you are eligible for the new tax benefit, please consult your tax advisor or the Internal Revenue website at the following address: http://www.irs.gov/taxtopics/tc456.html