The Student Loan Interest Deduction allows an above-the-line deduction of up to $2,500 in interest paid on qualified student loans. Phase-out: $80,000-$95,000 single / $165,000-$195,000 married joint MAGI 2026. The loan must have been used solely for qualified higher education expenses for the taxpayer, spouse, or dependent. Both federal and private student loans qualify. The deduction is 'above-the-line' — reduces AGI, available even without itemizing. Married filing separately makes you ineligible. Form 1098-E from your lender reports interest paid. The deduction can save $600 at 24% marginal rate — modest but meaningful.
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Student Loan Interest Deduction
August 22, 2026 · Aditya Gupta
Tax
Related terms
Alternative Minimum Tax
Alternative Minimum Tax (AMT) is a parallel tax system designed to ensure high-income taxpayers pay a minimum. Calculate…
American Opportunity Credit
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The Child Tax Credit (CTC) provides $2,000 per qualifying child under 17, with $1,600 refundable as the Additional…
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