If a third party makes payments on a student loan or donates money to help someone pay off his or he

It really depends on the income of the person donating his/her money to pay off the student loan debt. Since the money given isn't considered a charitable donation because it isn't paid through a 501C3 organization, it cannot be considered tax deductible. It is simply seen as a gift, rather than a donation, regardless if the person is a family member or a complete stranger. With that said there are certain rules that suggest the person who gives out the gift may be subject to a gift tax as long as the amount of the gift exceeds $14,000 per year.