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    shrush_24's Avatar
    shrush_24 Posts: 1, Reputation: 1
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    #1

    Mar 8, 2011, 09:47 PM
    Any tax benefit on interest paid on education loan from a foreign bank?
    Hello.. I am an indian citizen and working in the US. I was on OPT and then on H1-B in the year 2010. I also paid off my education loan(taken from an indian bank) during tha part of the year while I was on H1-B. Can I receive tax benefit for the interest paid on the education loan? Please help me. Thanks in advance!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Mar 18, 2011, 01:37 PM
    You CAN claim interest on a loan from a foreign bank IF you can show that the loan was used EXCLUSIVELY to pay tuition and fees at the college you atended.

    If the loan was used to pay other expenses, such as travel, food, rent or other living expenses, then the interest is NOT deductible as student loan interest.
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