Don’t Make This Mistake On Education Loan

Are you considering going abroad for higher education? ✈️

Unless you are loaded, you’ll have to take an education loan to fund your educational expense 🥲

Unfortunately, education loans can be expensive, with interest rates as high as 9-12%. However, there is a way for you to get up to 30% off through section 80E of the income tax act.

👉🏻 80E allows you to claim interest paid on an education loan as a deduction against your taxable income. That said, if you are going abroad and plan to work there, then you wouldn’t have taxable income in India, under which the deductions can be claimed.

Instead, you can have your parents 👨‍👩‍👧 be a co-applicant for your loan if they are working in India. This way, they can claim 80E deduction. And effectively reduce the interest paid on education loans by lowering their tax liability.