Student loan interest tax deductions

According to IRS Publication 970, Tax Benefits for Education, you can generally reduce your taxable income by up to $2,500 if:

  • Your student loan was taken out solely to pay qualified education expenses and it can't be from a relative or made under a qualified employer plan.
  • The student is you, your spouse, or your dependent.
  • The student is enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution.
  • Your modified, adjusted gross income (MAGI) is not more than $85,000 if filing as single, head of household, or qualifying widow(er) or not more than $170,000 if married filing a joint return.

For full details on eligibility requirements for a student loan deduction and how to claim it, see Tax Benefits for Education or speak with a tax professional.


Form for student loan tax deductions

You may need this document to deduct eligible interest on your federal income tax.

Form 1098-E: Student Loan Interest Statement

This form is only for the borrower and provides the amount of interest paid on eligible student loan(s) during the calendar year. Cosigners of eligible borrowers will receive a tax information letter, not a Form 1098-E.

  • Form 1098-E will include all eligible interest payments received by December 31. Please be aware that the amount of student loan interest paid may be different from the amount of accrued interest that appears on monthly billing statements.

Tax Information for Cosigners

Cosigners on Sallie Mae student loans will be notified of the total amount of interest paid on eligible loans, not necessarily the interest the cosigner paid. This notification is solely informative. The borrower on the loan(s) will receive the applicable tax form. If you need a tax form, please contact your borrower. 


Access your tax information

  • Online: Log in to your account. Forms are available to view/download by January 31. To receive an email when your tax form is available, make sure your Tax Statements permission is set to electronic delivery by December 31. To update your permission:

1. Log in to your account at salliemae.com.
2. Settings > Account Settings > Profile.
3. Click the Communication preferences button.
4. Under 1098-E Consent, choose Yes.
5. Click Update to submit your changes.

  • Mail: Forms are mailed by January 31.

Questions?

We can’t give tax advice, but here are some resources for more information on taxes:

  • Visit IRS.gov or call 800-829-1040.
  • Refer to IRS Pub 970, Tax Benefits for Education, or review the Student Loan Interest Deduction Worksheet in your 1040 or 1040A instructions.
  • Contact your tax advisor.

Related topics


This information is not meant to provide tax advice.  Consult with a tax advisor for education tax credit and deduction eligibility.  For more information, see IRS Publication 970.