Paying of the interest on Student Loans?

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Amy

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OK so heres the deal, apparently you get up to a 2500 tax cut for paying of the interest on your student loan. So does this mean that if my employer deducts at least 2500 from my pay check in taxes that I get this money back as a refund?
Also the interest on my loans is a simple interest, Which is more beneficial pay of the interest or pay of the principal on the loan.
 
Your employer doesn't do anything about the $2,500. You file that with your taxes.

It is more beneficial to pay the principle of the loan because you will reduce your interest and the ultimate cost of your loan. If you can afford, pay extra with every payment. You will get your loan paid off earlier, saving you a wad of cash.
 
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