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Tuition & Loan Forgiveness

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Perky

Senior Member
What is the name of your state? IL

I have a 1098-T from my university for 2007 tuition. Box 2 shows $4700. Boxes 8 and 9 are checked. There are no other amounts on the form. I have a Stafford Loan to cover my tuition. I will apply for loan forgiveness for the entire amount of the loan this year ($5000 federal, up to $5000 state). The loan is deferred until I finish school.

I'm confused about my taxes. With the 1098-T, I qualify for a Lifetime Learning Credit this year. Knowing that I will qualify for loan forgiveness, is it okay to take the credit? If I take the credit, will it affect my taxes next year?
 
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