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.
Like StudentPwns on Facebook
Follow @StudentPwns on Twitter
TagsAmerican Bar Association bankruptcy bi-modal salary distribution carpentry CBS Corinthian Dean John Y. Gotanda default discharge for-profit colleges for-profit schools fraud GradPLUS graduate students higher education bubble IBR income-based repayment interest interest rates law school lawsuit Masters in Business Administration MBA mission statement New York Times Ohio outstanding student loans Pell grants PLUS President Obama private student loans Robert Applebaum Sallie Mae scam SOTU Stafford loans state of the union student debt student loan bubble student loan interest student loans Undercover Boss undue hardship Villanova Law Washington Post