Before we go too much into depth let us first of all know who is eligible to apply for an education loan ?. A student who desires to study a course in India or abroad. Education loan liability is always with the student and guardian at the moment of loan application. After the completion of the course loan repayment liability falls on the student because the loan was taken for him/her. In case the student could not repay the loan then the guardian must repay it. Now here the tax benefit on the interest portion paid of the education loan is claimed by the one who pays it. If the interest portion is paid by the student he/she is entitled to claim the same. If the interest is repaid by the guardian then he/she should claim it.