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What kind of taxes are charged on the principal of student loans?


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Wiki User
2013-03-13 21:19:53
2013-03-13 21:19:53
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)..

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Federally guaranteed or insured loans, yes.

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No. Student loans are borrowed money, and is not considered "income;" therefore, you do not include them on your taxes.

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No, but is will affect your credit report.

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Contact your loan servicer or your guarantor.


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