Effective October 7, 1998 the 1998 Amendments of Higher Education changed eligibility requirements for loan cancellation. Loan cancellations previously eligible for loans disbursed after July 1992 are now available to ALL Perkins borrowers. You may be eligible if you are working full time in the following fields: Nursing; Medical Technician fields; Teacher of Mathematics, Science, Foreign Language, Bilingual Education and Special Education; and as a Law Enforcement Officer (enforcing criminal law); OR providing services: As a Qualified Professional and Provider of Early Intervention Services (as defined in section 672(2) of the Individuals with Disabilities Education Act that are provided to infants and toddlers with disabilities); to High -Risk Children (Individuals under the age of 21 who are low-income and at risk of abuse or neglect, have been abused or neglected, have serious emotional, mental, or behavioral disturbances, reside in placements outside their homes, or are involved in the juvenile justice system.
**Student Loan Interest Deduction**
Beginning January 1, 1998, taxpayers that have taken loans to pay the cost of attending an eligible educational institution for themselves, their spouse, or their dependent generally may deduct interest they pay on these student loans. The maximum deduction each taxpayer is permitted to take increases from $1,000 in 1998 to $2,500 in 2001 and thereafter. The following table summarizes the yearly increases. Year Maximum Deduction 1998 $1,000 1999 $1,500 2000 $2,000 2001 and thereafter $2,500 The deduction is available only for interest payments made during the first 60 months in which interest payments are required on the loan. The student loan interest deduction is available for interest payments due and made on or after January 1, 1998. Thus, the first time taxpayers will be able to claim the deduction is when they file their 1998 tax returns in 1999. No student loan interest deduction will be allowed for interest due or paid before 1998. For more information go to: www.irs.ustreas.gov/hot/not97-605.html
**Bankruptcy Law Change**
Effective October 7, 1998, student loans or educational debts are no longer dischargeable except for undue hardship.
Graceland University -
Lamoni Campus | 1 University Place | Lamoni, IA 50140 | 641.784.5000
