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As of July 1, 2010, nearly all federal student loan lending is through the Direct Loan Program:
Although the Federal Family Education Loan (FFEL) Program was eliminated in July of 2010, there are many existing FFEL loans that will be held, serviced and collected for many more years by FFEL lenders, servicers and guaranty agencies:
20 U.S. Code § 1091
Student eligibility for all student loans.
20 U.S. Code § 1091a
State statutes of limitations do not apply in the student loan repayment context. There is no statute of limitations on collecting this debt, except when the student dies.
26 U.S. Code § 108(f)
In an exception to the general rule, student loan debt forgiveness is not taxable if it is part of a public service loan forgiveness program. However, loan discharges for closed schools, false certification, unpaid refunds, and death and disability are considered taxable income. Forgiveness of the remaining balance under income-contingent repayment and income-based repayment after 25 years in repayment is considered taxable income.
11 U.S. Code § 523(a)(8)
Student loans are not dischargeable in bankruptcy unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents.
Topic Number 456 - Student Loan Interest Deduction
Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntarily pre-paid interest payments. You may deduct the lesser of $2,500 or the amount of interest you actually paid during the year. The deduction is gradually reduced and eventually eliminated by phaseout when your modified adjusted gross income (MAGI) amount reaches the annual limit for your filing status.