In tax year 2011 I paid almost $7,000 in interest on the student loans that I have for my undergraduate and law school education. However, I can only deduct $2,500 in such interest when calculating my taxes.
If I had chosen to invest money in a house instead of in my education I could deduct the full amount of any interest I paid on my mortgage.
There seems to be no rationale reason to limit the student loan interest deduction in this manner. Education is equally as important as purchasing real estate and it should be recognized as such.



