Can taxes be taken for student loans?
Federally guaranteed or insured loans, yes.
Let me start by sending my condolences for the loss of your father. If the student loans were taken out by your father as PLUS loans, then the loans will be forgiven by the government. If you took out the student loans under your SS#, then you still have to pay on the loans, even if your father cosigned on them.
In the US, the only way you can keep the government from taking your tax return in the future is to consolidate the loans and get them out of default. You can get help with the consolidation by clicking on the link at the bottom of this text box. Debt from student loans, especially gove. student loans as well as child support and other government obligations usually can not be discharged. They have to be…
Answer There are no taxes on the principal of any loan, student or otherwise. In fact, there are no taxes on the payor of interest on a loan, student or otherwise. (The receipient of interest has taxable income of the amount earned). The interest paid on a loan secured by ones residence, are generally, deductible (the opposite of paying taxes)..