How to claim the student loan interest deduction: Rules and income limits

If you borrowed money for college for yourself or your child, you may be eligible for the student loan interest deduction, which can reduce your taxable income by up to $2,500. You’re only eligible for the tax deduction if you paid student loan interest during the tax year. If you didn’t make student loan payments in 2025 because your loan was in forbearance, deferment, or default, you won’t qualify to deduct student loan interest. To take advantage of the student loan interest deduction, it’s important ...