<p>Hello, </p>
<p>My AGI went over the phase out MAX of 75,000 for head of household/single filer. It was only $2000 over!! I was thinking I should decrease my AGI by starting up a 403 b retirement account. So next year (my daughters base year for FAFSA) I could claim my student loan interest deduction. Thoughts, ideas. </p>
<p>Not sure how minimal this “phase out” is on the student loan interest deduction (since I will be just under the phase out if I lower my AGI for next year). </p>
<p>Plus, I understand contributions to such retirment funds 403 b are added back into FAFSA formula anyway.</p>
<p>Have you contributed to an IRA for 2012? If not, you could still do so up until April 15, 2013 and amend your tax return and FAFSA if you have already filed them.</p>
<p>Same happened to my son this year. He was quite peeved as he has been paying down his lower interest car loans thinking he would get the tax break on the student loans. I guess, as problems go, it is a good one to have.</p>
<p>If you can afford it, you should do the 403B, regardless of the loan interest deduction. Its just good retirement planning, and it will be beneficial for the long term.</p>
<p>hmmm…have til april 2013…great idea!! thanks</p>