Student Loan questions

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Q. I will be attending school beginning this fall and am trying various ways to fund my tution. I am somewhat confused on how to setup a loan so it qualifies for interest deduction 1) Part of my tution will be reimburse by company - I have already talked to the company and there will be no tax consequences. 2) I have borrowed some fixed rate credit card loans (3% and less). Is there something I need to do to qualify interest paid as student loan interest. What documentation do I need to maintain 3) I am assuming room, board, tution and fees are eligible for student loan amounts that qualify for interest deduction. Is this OK. If I am moving my entire family does room and board for the entire family qualify? what about moving cost. 4) I am realising that without a job I would have to pay for my own health insurane which after tution and rent is the single largest expense and will be close to $8000/year. Is there any kind of deduction I qualify on this?

A. As long as the loan proceeds are used for qualified educational purposes, the interest paid will be deducted according to the laws in effect at the time the repaymetns are made. 1.Nope, there would be no tax implications to you. 2.One, I wouldn't mix the use of those cards. Meaning, don't do anything else BUT pay for qualified educational expenses (no frat parties on plastic). 3.Room and board for the entire family would not be included. 4.Not for educational tax credits, no. Maybe on Schedule A., but I doubt you'll have enough to count. Check out Publication 960, which covers many of the tax benefits for education.

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