Tax Payer Relief Act

Each year, usually around the first of January, the billing service will send a statement including the amount of interest you have paid on your loans during the previous year. This information will be sent to the address on file at that time. If you have opted to submit your payments by automatic draft be sure your address information is kept current. The information is also accessible on line at www.mycampusloan.com

As a result of the Taxpayer Relief Act of 1997, taxpayers who received loans to pay the cost of attending an eligible educational institution for themselves, their spouse or their dependents may be eligible to deduct interest paid on those loans each year. This deduction is for federal income tax purposes, and can be claimed by eligible taxpayers beginning with the 1998 tax year. The student loan interest deduction for each year is available for interest payments made on or after January 1st.

To be eligible for the deduction, the student loan must have been used to pay the costs of attendance at an eligible educational institution for a student enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Eligible loans include, but are not limited to, federal student loans, including loans for health profession students; federal consolidation loans, federal Parent Loans for Undergraduate Students (PLUS); educational loans issued by banks and private lenders, and institutional loans. Loans do not have to have been made in 1998 to be eligible.

The billing service will enclose Form 1098-E only for student loan interest which exceeds $600 in a given year. However, you may deduct eligible interest you paid on your loans each year without the form if the interest you paid is less than $600. We encourage you to contact your tax advisor for any questions regarding your specific tax situation.