Is the interest on student loans tax-deductible?
You can generally deduct up to $2,500 in student loan interest payments (in 2002) even if you do not itemize deductions. Qualifying loans include any debt incurred to pay higher education expenses for yourself, your spouse, or a dependent at the time you incurred the debt. The student must have been enrolled on at least a half-time basis when the loan was made. You cannot take this deduction if you use the Married Filing Separately filing status, or if you are claimed as a dependent on someone else s return.
