Question
Is interest on an education loan tax-deductible?
Answer
Bottom line: Yes — Section 80E allows the full interest on an education loan as a deduction, with no cap, for up to 8 years.
1. What
The entire interest paid is deductible; the principal is not.
2. For whom
Higher education of self, spouse, children, or a student you are guardian of, on a loan from a bank or notified institution.
3. Regime
Available only under the old regime.
Estimate the benefit with our Income Tax Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.