Here's what you need to know about student loans and taxes.

Student Loans: Taxes

If you made payments on your federal student loans in 2018, you may be able to save money on your federal income taxes.

1. Student Loan Interest Deduction

In certain cases, you can deduct on your federal income taxes the student loan interest you paid on your federal student loans.

Your student loan servicer for your federal student loans will provide you with a Student Loan Interest Statement, which is also known as Form 1098-E. Focus on the amount of interest you paid, not your total student loan payment. The amount of interest you paid on your federal student loans is what may help you receive a tax deduction.

If you paid $600 or more in interest: you will receive at least one 1098-E from your federal student loan servicer.

It’s too bad that Uncle Sam ever got into the college-financing business. The feds have no constitutional authority to lend money to students (or anyone else) and millions of students have gotten themselves deeply in debt for education of dubious value. Easy federal loans were essential in fueling the “college for everyone” movement that has raised the cost and degraded the educational value of earning a degree.

Often people speak of college as an “investment” but the money for it isn’t invested in any real sense. No person or group evaluates the likely costs and benefits of college for a particular student and then decides if it makes sense or not. The feds simply dish out the funds and if the student can’t later pay, taxpayers suffer the loss.

But there is an alternative that actually involves investment analysis, namely Income Share Ag

NPR reports Teacher Loan Forgiveness Program still not working. We encourage you to review the article and contact us to find out how this might affect you.