Interest Paid on Student Loans Deductible

As of 1998 interest paid on a student loan has qualified as a tax credit. To be eligible to claim the interest paid on your loan in 2004 or the preceding 5 years, you must have received the loan under
the Canada Student Loans Act, the Canada Student Financial Assistance Act, or a law of a province or territory governing the granting of financial assistance to students at the post-secondary level.

You can not claim interest that you have already claimed but amounts you do not claim this year can be carried forward to any of the next five years. Only you can claim the interest paid on your student loans even though someone other than you (such as a parent) may have paid it.

For more information see the CRA web site for information on completing line 319 of your 2004 tax return:
http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines300-350/319-e.html