I currently have a SL in Rehab and I was wondering if I can deduct this when filing taxes... I know for normal student loans not in default, you can deduct interest paid when filing taxes.

Does it apply the same way for loans in rebab?

I just finished rehab and I received an Interest form from the loan company for the IRS so I'm assuming I can. I plan to, since they sent me the form to do so.

Edited to say: I finished rehab..I just now saw that you are still in it. I don't know if that makes a difference.

I am currently in rehab but I received a for 1098-E (student loan interest statement) from USA Funds c/o Sallie Mae Inc but I am not quite sure how it will work for me...

Yes, you can deduct that amount in the statement. If you use tax prep software, you'll be prompted to enter the information.

I have a similar problem,my wages were garnished 8/2006. In feb/2007 I signed up for rehab with Isac, so in addition to the garnishment I paid $40 a month. Will I be able to claim this on my taxes?


or can I only claim the amout that was not part of the garnishment. My loan was taken out of default in Oct/Nov. and transfered to ACS.

thanks guys

You should receive a 1098 for interest paid. However, since payment are applied to fees first, you might not have touched your interest.