RIA Senior Tax Analyst Focuses on the Fine Print of the Education Loan Interest Deduction—Plus Some Other Tax Breaks For Students and Their Parents.

New York, NY  08/16/2007

By now, the excitement of receiving college acceptance letters may be replaced by the shock of tuition bills that follow enrollment.  Or the joy of a child’s graduating from college—and no longer incurring tuition—is eclipsed by the obligation to repay student loans. “As families scramble to get the largest grants and lowest interest rate loans available, they should not overlook the tax implications of the plans they choose and the way they choose to make their payments,” advises Bob D. Scharin, RIA Senior Tax Analyst from Thomson Tax & Accounting, a part of The Thomson Corporation (NYSE:TOC,TSC:TOC).

“The tax breaks fall into two categories: ones for paying the education costs themselves and deductions for paying interest on loans used to pay the bills.  Most of the tax relief provisions are restricted to those with incomes below specified amounts, and those amounts vary from one tax provision to another,” Scharin says.  “This adds confusion for families attempting tax planning.”