A couple of clients (and friends!) had this happen to them this year. They had the good fortune to be able to pay off their dependents’ student loans. But not a lot of people are lucky enough to have their parents help them pay off their student loans. And I get asked this all the time-should I pay off my student loans early? What are the benefits to keeping them? After digging through a lot of literature on this, this is what I came up with.

Tax Break

A common misconception is that you should keep your student loans to get a tax break from the interest. One has to remember, the maximum tax break for student loan interest is $2,500 and it starts to phase out at $75,000 when filing single ($155,000 filing jointly). If your income is less than the phase-out amount and you can make use of the deduction, Read More