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Is a Payment to a Student Loan Company Exempted from the Gift Tax?

Posted by Laura E. Stubberud | Mar 18, 2022 | 0 Comments

One way for a gift to be exempted from reporting requirements, no matter the gift's size, is to pay for someone else's educational tuition. However, only payments directly to educational institutions qualify for the exemption to the gift tax filing requirements, so a payment to the lending institution would not qualify. But unless your estate is now or is likely to grow to be more than $6 million – more or less the level of the federal gift tax exclusion beginning in 2026 – this should not be a big concern. The lifetime gift tax exclusion means that even if you are technically required to file a Form 709 because you gave away more than $16,000 to any one person last year, you will owe taxes only if you have given away more than the full exclusion in the past.

About the Author

Laura E. Stubberud

Laura Stubberud has over two decades of experience in the practice of estate and family law in Nevada. After graduation from UCLA, she studied law at Southwestern University School of Law , graduating in 1992. With over 25 years of practice in Clark County, Nevada, Ms. Stubberud has substantial e...


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