education expenses

Financial Planning Tax Strategies
#1

My understanding is that I can pay someone else’s educational expenses without limit and without filing a Form 709, if I make payments directly to the institution.

What about for someone who’s already graduated, could I pay off their student loans, making payments directly to the loan provider?

TIA

#2

No. The loan provider is not an educational institution.

You can pay their debt, but that payment is not exempt from the usual gift tax reporting.

—Peter

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