Tue Jan 21 08:53:57 UTC 2025: ## Union Budget 2025 Expected to Simplify Education Loan Tax Benefits
**NEW DELHI** – Ahead of the Union Budget 2025 announcement, education sector experts anticipate significant changes to the tax benefits associated with education loans. Currently, Section 80E of the Income Tax Act allows deductions on interest paid on education loans, but experts suggest several improvements.
Poshak Agrawal, Co-founder of Athena Education, highlights the need for clearer guidelines, streamlined documentation, and improved online platforms to simplify the claim process. This would make accessing the financial benefits easier for families.
Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, points out that the current eight-year deduction period for interest payments often falls short. He suggests extending this to 10 or 12 years, increasing the deduction cap, and potentially including the principal amount in the deductions.
Vinu Warrier, Managing Partner & Founder of eduVelocity, criticizes the current Rs 10 lakh loan limit for domestic institutions as insufficient for quality education. He advocates for a nationwide financing scheme encompassing grants, loans with low or zero interest, and work-study options across public and private sectors. The government is expected to address these concerns in the upcoming budget.
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