Is my student loan interest tax deductible?

We're getting questions from many of you about taking a deduction for interest paid on your student loans.

Yes, the interest is still deductible!

Your lender prepares IRS form 1098E and files it with IRS and also provides you a copy.

Student loan interest is interest you paid during the year on a qualified student loan. The deduction can be up to $2500. The deduction is gradually reduced and eventually eliminated by phaseout when your income reaches the annual limit for your filing status.

The deduction is an "above-the-line" adjustment to income, so you don't need to itemize your deductions.

If you have questions, please let us know.