Student Loan Interest Deduction

Student borrowers or their families can deduct student loan interest payments from their taxable income. You may deduct only the interest you have paid, not the interest that is accumulating when you are not making payments. The deduction is available even if you do not itemize deductions. The loan must be used to pay education expenses, such as tuition and room and board. The maximum deduction is $2,500.

Eligibility

You can deduct up to $2,500 if your modified adjusted gross income (AGI) is $65,000 or less if you are single and file an individual tax return or $130,000 or less if you are married and file a joint tax return. The amount of your deduction is gradually reduced if your AGI is between $50,000 and $65,000 (individual tax return) or between $100,000 and $130,000 (joint tax return).

Limit

You can deduct student loan interest paid even after the end of the first 60 months of required payments.

For more information, contact:
U.S. Internal Revenue Service (I.R.S.)
Phone: 1.800.829.3676

Up to $5,000 to Complete Your Bachelor's Degree.
See if you are eligible  

A Safe and Easy Way to Save for College.
Learn more  

Do You Want to Go to College?
Check out our step-by-step guide for middle and high school students