September 28th, 2009
Student loansâ€¦.. not a topic that most people really enjoy talking about. But if you have to have one, you might as well do it right.
You probably already knew that you can deduct the interest on your student loan. So once you graduate and start paying back that huge loan, at least the government will give you some tax relief.
But, keep in mind that in order to deduct the interest on a student loan, it MUST be a government student loan. Some banks advertise a student line of credit. Other banks may pitch you a loan designed for students. Iâ€™m not saying these arenâ€™t good products, Iâ€™m just warning you that you may not be able to deduct the interest on these loans.
If in doubt, just ask the bank if the loan is being made under either the Canada Student Loans Act, the Canada Student Financial Assistance Act, or a similar provincial or territorial government law.Filed under: Personal Tax by David Boese No Comments »