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.
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.
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