The Student Loan Interest Deduction


What is the Student Loan Interest Deduction?
Who may qualify for the Student Loan Interest Deduction?
Who may claim the Student Loan Interest Deduction?
What payments may qualify for the Student Loan Interest Deduction?
How does my 1098-E relate to the Student Loan Interest Deduction?
How may I claim the Student Loan Interest Deduction?


What is the Student Loan Interest Deduction?

It is a federal income tax deduction that:

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Who may qualify for the Student Loan Interest Deduction?

Students who:

At UCI, a student who carries 6.0 or more units for the quarter is considered to be enrolled "at least half-time."

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Who may claim the Student Loan Interest Deduction?

Taxpayers who:

The various federal and institutional loans disbursed to students at UCI fit the criteria for "qualified student loans."

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What payments may qualify for the Student Loan Interest Deduction?

Interest payments that:

UCI's campus-based and institutional loans do not have origination fees; see the summary of each loan for details.  UCI students may use the online account features at the ACS and/or Direct Loan Servicing web sites to look up amounts of interest paid.

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How does my 1098-E relate to the Student Loan Interest Deduction?

Your 1098-E for tax year 2004 may provide the following information: 

Depending on the number of loan servicers involved, the types of loans you have, and the amount of interest you paid during the tax year, you may not receive any 1098-E forms, or you may receive several.  If you paid less than $600 interest during the tax year, a loan servicer is not required to issue a 1098-E for those payments.  However, if you paid at least $600 each to different servicers, each servicer must issue a 1098-E to you.  If your servicer administers loans from different lenders separately, you may receive more than one 1098-E from the same servicer.

If your "qualified student loan" was taken out before 2005, the loan servicer is not required to include payments of loan origination fees and/or capitalized interest in Box 1.  Therefore, Box 2 may be blank (not checked) even if you paid these amounts.  UCI students may use the online account features at the ACS and/or Direct Loan Servicing web sites to look up payments.

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How may I claim the Student Loan Interest Deduction?

The IRS advises:

If you paid less than $600 in interest, a loan servicer is not required to issue a 1098-E to you.  Not receiving a 1098-E does not necessarily make you ineligible for a Student Loan Interest Deduction.  You may use the instructions for your federal tax return to figure and claim a benefit, even if you do not receive a 1098-E form.  

UCI students may use the online account features at the ACS and/or Direct Loan Servicing web sites to look up interest payments.  Note that UCI and loan servicing staff are unable to provide you, or your designated representative, with individual income tax advice.

Please contact the Internal Revenue Service (800) 829-1040 or your personal tax advisor for help preparing your tax return.  For free tax assistance, visit the IRS web site, contact your local IRS office in California, or locate a Volunteer Income Tax Assistance Program (VITA) site in your area. 

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The information provided in this web page is NOT tax advice.  It is offered only as general information for UCI students and their families.  Please consult a qualified tax expert for advice on computing, claiming, or determining qualification for any tax benefit mentioned in this web site.


Further information is available from:

Internal Revenue Service

Internal Revenue Service
(800) 829-1040 or TTY/TDD (800) 829-4059
Publication 970:  Tax Benefits for Education
Tax Topic 456:  Student Loan Interest Deduction
FAQ:  Student Loan Interest Deduction
Tax Trail:  Student Loan Interest

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