Can i pay my son's student loan?

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Rather than giving cash, you can typically become an authorized payer on your child's student debt through their loan servicer. That way, you can go directly to the source and make payments. An alternative method is to help your child with student loan payments using Gift of College gift cards.

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If you help pay your child’s student loan debt, you might need to pay gift tax and file a gift tax return during tax season. A gift tax applies to the giver (that’s you) and to any contributions more than $15,000, as of 2020. Tuition is excluded from gift tax but, unfortunately, loan payments are not.

Under the fees system introduced in 2012 students in England can apply for loans to cover tuition fees of up to ÂŁ9,250 a year plus a maintenance loan to help with living costs of up to ÂŁ11,354 a ...

For one thing, if you co-sign your student’s loan and then wind up making the payments, that money won’t count as a gift. You can also pay your child’s school bills directly. Tuition payments qualify for a gift tax exclusion no matter the amount—though this rule doesn’t apply to non-tuition expenses like books.

Assuming all the above conditions have been met, you can indeed deduct the interest on your child’s student loan – regardless of who actually made the loan payments. So, if a generous grandmother decides to pay a few months’ worth of the loan installments, not only are you relieved of paying the principal for that period, but you also get ...

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