Student Loan Interest Deduction

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The student loan interest deduction allows you to deduct from your gross income a portion of the interest you pay on student loans. The maximum deduction is $2,500.

Eligibility requirements

To take the deduction, you must meet several requirements:

  • The interest must be paid on a qualified education loan that was used to pay qualified higher education expenses (for a definition of these terms, see Questions & Answers). Generally, federal student loans, private bank loans, college loans, and state loans are eligible.

  • You must have incurred the debt while you were enrolled on at least a half-time basis.

  • If married, you must file a joint return.

  • In 2018, to take the full deduction, your modified adjusted gross income (MAGI) must be under $65,000 for single filers) or under $135,000 for joint filers. A partial deduction is allowed for single filers with a MAGI between $65,000 and $80,000 and joint filers with a MAGI between $135,000 and $165,000. For information on how to calculate your deduction if your MAGI falls within these ranges, see Questions & Answers.

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