Education loan - Income tax benefit

Repayment of loan taken as a  student for pursuing higher studies (Sec. 80E)

Any repayment of the principal amount of loan taken from a financial institution or a recognised charitable organisation for higher studies and interest thereon is allowed as a deduction upto a maximum amount of Rs. 40,000/- in a year. The relief is available to persons who have undertaken graduate or post graduate courses in any branch of engineering, medicine or management or post-graduate courses in any university in pure sciences, applied sciences, mathematics or statistics. This deduction is allowed for a maximum period of 8 years beginning with the year in which repayment starts.