If you take out a student loan for your child, you may be eligible for tax benefits.

Student loan interest is deductible in qualifying cases. As the tax code can change, refer to IRS Publication 970 at http://www.irs.gov/publications/p970/index.html for any updates or changes to the tax code.

The student loan interest deduction is defined by the following rules:

-       The loan is a dedicated student loan, used solely for the purposes of education. It cannot be a line of credit used for other purposes.

-         For a parent to take the student loan interest deduction, the parent must take out the loan or co-sign on the loan with the student. (If the student takes out the loan in his or her own name, then the student gets to deduct the interest.) The person taking the interest deduction must be the person who is primarily responsible for loan repayment.

-        Depending upon your tax filing status, this deduction will phase out over certain income limits. Consult a current IRS publication 970.

-        The tax deduction is limited to a certain amount (see www.IRS.gov for the current amount).

-         Loans from relatives or from employer plans do not qualify for this deduction.

-      If your child is still your dependent, he or she cannot deduct interest on his or her own student loan, even if they are primarily responsible for paying that loan.

For more information about student loans and the student loan deduction, see the following:

-         http://www.studentloanfinancialgroup.com/frequent-financial-questions

-         http://www.studentloanfinancialgroup.com/faq/tax-benefits-for-parents

-     http://turbotax.intuit.com/support/kb/tax-content/tax-help/deductions/4025.html