You probably shouldn’t trust anyone offering you free government money unless that person happens to be dancing around the nation’s capital wearing a blue leisure suit with question marks on it. Know what I’m sayin’? But hear me out.
If you have more than one PLUS or GradPLUS loan at an 8.5% fixed rate (loans taken out between July 1, 2006 and July 1, 2010), you can consolidate those loans into one 8.25% fixed-rate loan. Welcome to the PLUS consolidation loan loophole.
“Student loan interest is deductible,” they say. Makes it sound like taking out student loans is such a good deal! But is it really such a good deal? I did the math to find out…
The IRS hasn’t updated its website yet, but according to the tax wizards at H&R Block, the same student loan interest deductions that applied in 2009 will apply in 2010. Great! How much will I save?
- Pwn (v.) Slang term derived from the verb own, as meaning to appropriate or to conquer to gain ownership. The term implies domination or humiliation of a rival.