Interest paid on personal loans is not tax deductible. If you borrow to buy a car for personal use or to cover other personal expenses, the interest you pay on that loan does not reduce your tax liability. Similarly, interest paid on credit card balances is also generally not tax deductible.

Is paying off someone’s debt a gift?

Answer: If a friend or family member pays your student loans off, it is probably a non-taxable gift to you. However, your friend or family member may be responsible for filing gift tax returns and for paying any applicable gift tax on the payment.

How many members of Congress don’t pay back their student loans?

Children of Congress Members Don’t Pay Back Student Loans-Fiction! 35 Governors Have Sued the Federal Government to Create 28th Amendment-Fiction! Summary of eRumor: A chain email says that children of members of Congress and their staffers have their student loans forgiven.

Are there federal student loans for congressional family members?

The Federal Student Loan Repayment Program applies only to employees of federal agencies. It does not cover loans made to their children or other family members, and it does not provide student loan benefits to congressional family members. Snopes.com.

How does student loan forgiveness benefit members of Congress?

While these proposals and plans benefit millions of Americans, they also personally benefit certain members of Congress. This doesn’t mean that members of Congress proposed student loan forgiveness so they could benefit financially. Nor does it mean that members of Congress haven’t properly disclosed their student loan debt.

Who is not eligible for student loan repayment?

Dan Weiser, a spokesman for the House chief administrative officer, confirmed that House members and their families are not eligible for student loan repayment. “The loan must be in the employee’s name,” he wrote to us in an e-mail.