What student loan borrowers need to know about the 2023 tax season

As we look ahead to the future, it’s essential for those with student loans to stay informed about upcoming changes. In 2023, the tax season will be a little different for borrowers.

For example, interest paid on student loans will be deductible on federal taxes, even if the borrower doesn’t itemize. Credits and deductions will change as well, with new options available for tax filers. It’s important to pay attention to these new opportunities and to educate oneself to take advantage of them.

However, it’s important to note that not all student loan debt is created equal in the tax code. Federal student loans can generally be deducted, but private loans do not carry the same tax benefits. For those with both types of loans, it is important to keep separate records and to understand the difference in treatment.

These changes to the tax code underscore the importance of staying informed and staying engaged with one’s loans. It’s also a reminder that education is an investment that has lasting implications beyond the classroom. With the right information, it is possible to make effective financial decisions that can help ensure long-term financial health.