Which type of student loan is eligible for interest deduction?

The interest deduction for student loans is specifically designed for qualified education loans, which typically includes loans from financial institutions, government agencies, or other qualified lending sources. The deduction allows taxpayers to deduct interest paid on these loans when they meet certain requirements.

Options involving loans from a trust, family members, or employer plans do not qualify for this deduction. Loans from a trust are not recognized as qualified education loans under tax law. Similarly, loans from family members are generally not treated as qualified loans for tax purposes and thus do not qualify for the interest deduction. Loans made through an employer plan also do not fit within the government’s definition of qualified education loans eligible for interest deductions.

Therefore, none of the provided choices represent types of student loans that can qualify for the interest deduction, confirming that none of the alternatives are correct.