Eligibility & Requirement Checklist
You may qualify for the student loan interest deduction if:
- You paid interest on a qualified student loan.
- You’re legally obligated to pay interest on the qualified loan.
- No one claims you nor your spouse as a dependent on their return.
- You don’t file as married filing separately.
- Your income falls within the eligible limits.
- The loan was used for qualified education expenses for an eligible student.
- Your employer hasn’t reimbursed your student loan interest.
Types of Loans That Qualify For the Student Loan Interest Deduction
Both federal and private student loans can qualify for the student loan interest deduction. However, the loan must have been used solely for qualified education expenses for you, your spouse, or someone who was your dependent when the loan was taken out.
Interest on refinanced or consolidated student loans can also qualify when the new loan is used to refinance qualified debt for the same borrower.
The following don’t qualify:
- Loans from relatives
- Loans from qualified employer plans
- Refinanced amounts used for noneducation expenses
Qualified Education Expenses
Several rules determine whether expenses qualify:
- The Qualified Student Loan must be used to pay qualified education expenses of a student attending an eligible educational institution.
- The expenses must also be incurred or paid in a reasonable amount of time before or after the loan is taken out.
- The student who is using the loan proceeds must be enrolled at least half-time.
Qualified education expenses may include:
- Tuition and fees
- Books, supplies, and equipment
- Certain room-and-board costs
- Other necessary expenses, such as transportation
Income Limits & Phaseout Thresholds
Your modified adjusted gross income (MAGI) and filing status determine whether you can claim the full student loan interest deduction, a reduced amount, or no deduction.
| Filing status | Full deduction allowed | Partial deduction | No deduction |
|---|---|---|---|
| Single | MAGI of $85,000 or less | More than $85,000 but less than $100,000 | $100,000 or more |
| Head of household | MAGI of $85,000 or less | More than $85,000 but less than $100,000 | $100,000 or more |
| Married filing jointly | MAGI of $170,000 or less | More than $170,000 but less than $200,000 | $200,000 or more |
| Married filing separately | NA (Not Eligible) | NA (Not Eligible) | NA (Not Eligible) |
Source: Internal Revenue Service
How to Claim the Deduction (+Required Forms)
You should generally receive Form 1098-E from your lender or loan servicer if you paid at least $600 in qualified interest this year. If you paid less, check your year-end account statement or online loan-servicing account for the interest amount.
- Calculate your allowable deduction using the Student Loan Interest Deduction Worksheet in the Form 1040 instructions.
- Report your student loan interest deduction on Schedule 1 of Form 1040, line 21.
- Special rules apply to calculation of MAGI when there is foreign earned income exclusion, housing exclusion or deduction, and income of residents of American Samoa and Puerto Rico.
Keep Form 1098-E and supporting loan records with your tax documents in case you need to verify the deduction in the future.
