Student Loan Interest Deduction

What is an eligible educational institution?

An eligible educational institution includes most institutions of higher learning that are eligible to participate in a student aid program administered by the Department of Education. Practically all accredited post secondary institutions such as colleges, universities and certain vocational schools are eligible.

Who is an eligible student?

An eligible student is a person who is enrolled at an eligible educational institution in a degree, certificate or other program leading to a recognized educational credential. Both undergraduate and graduate programs count. The student must be enrolled for at least half the normal full time workload in that program.

Income Phaseout

The student loan deduction adjustment is reduced or eliminated based on your modified AGI. For most people, modified AGI is your AGI figured without the student loan deduction.  The student loan deduction limits are shown in the table below.

The limit on student loan interest deduction

If your filing status is..	and Your modified AGI is	Then
single, head of household, qualifying widow(er)	not more than $50,000	you can deduct all your interest, up to $2,500
	more than $50,000 but less than $65,000	your deduction is limited
	$65,000 or more	you cannot claim this deduction
Married filing jointly	not more than $105,000	you can deduct all your interest, up to $2,500
	more than $105,000 but less than $135,000	your deduction is limited
	$135,000 or more	you cannot claim this deduction