Student loans and scholarships offer tax benefits. A portion of the interest on federal and private student loans may be tax deductible. Some forms of student loan forgiveness are tax-free and some are not. Depending on the details, college scholarships may be fully or partially tax-free.
Student loan forgiveness, cancellation and repayment programs may be tax-free in certain circumstances. Generally, the forgiveness must be restricted to working in a particular occupation for a period of time.
PrivateStudentLoans.com recommends you consider all financial aid alternatives including grants, scholarships and federal loans
(Federal Stafford, Federal Parent PLUS, Federal Grad PLUS) prior to applying for private student loans.