Is there a tax deduction available for student loan interest?
Yes! Under Section 221 of the Internal Revenue Code borrowers can deduct some of the interest that they have paid on student loans. If you have taken out loans to pay for the cost of attending an accredited college for yourself, your spouse, or a dependent, then you may be eligible for this deduction. The deduction works as an adjustment to reported income on your tax forms. Students who paid interest on qualified student loans may deduct up to $2,000 of the interest paid.
