Q: Is money given or used as personal Education loan tax deductible?
I think my answer is No. however, I would be receiving the money from a family member as a personal loan, exclusively for education. I’m just trying to see if it would be deductible for the loner or borrower. Also, what if the loan was set up through a family members business? Does it need to be from a formal educational loan institution?
A:
Your question doesn't really make sense.
If you're loaning someone money to pay for school that would not be deductible. Neither would gifting the person money.
If you're the person borrowing money for education it may or may not be deductible. The deduction comes from the educational program attended not the source of the funds.
1 user found this answer helpful
A: I agree with Mr. Blackburn. The cost of education may be deductible by the person who paid the cost depending upon several work-related factors. Since the person who loaned the student the money will not benefit from the education, the loan is not deductible.
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