MINNEAPOLIS — If your student loans are currently paused by the federal government, you are not able to claim a deduction for them.
According to the CPA, that deduction is only for interest paid on student loans. During the current pause, interest isn't accruing. So even if you're still making payments, that money is going to the loan principal — not interest.
However, Ann Etter, a partner at Goodney & Etter in Northfield, says you should check what kind of loans you have, because if they aren't federal, you may be able to still get the deduction.
"Loans get sold, loans get moved around, and I think a lot of people aren't sure exactly what loans they have," Etter said. "They took out these loans when they were 18 to 22 years old in many cases and didn't necessarily understand what was happening."
Etter recommends checking with a CPA if you have questions. She says interest paid on any loan taken out for the purpose of education should qualify for the deduction.
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