When you pay your taxes, make sure to include the amount of interest you paid on your student loans last year. That amount is deductible — you can save up to $625 depending on your tax bracket.
You need to save money while paying off your student loans. Contribute to your 401(k) the minimum amount necessary to get your employer’s matching funds. That’s free money! It’s one way to put some money toward retirement savings even while handling a hefty monthly payment. And remember — if you’re not making much right now, you may be eligible for an income-based repayment plan, or a loan term extension to minimize the payments due now. Just make certain that you won’t be paying so much more over time that it offsets the benefit of freeing up some immediate cash.
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Long-Term Tax Strategies For Student Loan Borrowers