What is the student loan interest deduction?
You may qualify for a tax deduction of up to $2,500 just for paying your student loans. The Student Loan Interest Deduction allows you to deduct up to $2,500 of student loan interest paid during the year. Interest paid on loans you received for your spouse’s or child’s education may also be deducted. This deduction is available regardless of whether you itemize deductions on your federal tax return. According to the IRS, to claim the Student Loan Interest Deduction you must meet the following criteria: You must have been enrolled at least half time in a degree granting program during the time of the loan.
