Student Loan Interest Tax Credit — Claim Current or Prior 5 Years of Government Loan Interest
What Is It?
CRA allows a non-refundable credit for eligible interest paid on certain government student loans.
Why It Helps
- You can claim current-year interest
- Unused amounts can be carried forward up to five years
- It helps borrowers who had little tax payable in the year they paid the interest
What Most People Don’t Know
- Only certain government student loans qualify.
- The carryforward can be smarter than claiming the amount in a low-income year.
- Private refinancing can destroy eligibility for the credit.
Good To Know
- Private loans and many refinanced loans do not qualify
- Only the borrower legally responsible for the loan can claim it
- Tracking unused carryforward amounts is your job